Aurizon Holdings Ltd (ASX: AZJ) has experienced a notable decline in its share price on Monday following the release of its FY24 financial results. The rail freight operator's shares have fallen to $3.462 each, marking a 6% decrease in early trading as investors review the company's annual performance.
Financial Highlights and Performance
Aurizon reported several positive financial metrics for FY24, including:
- Revenue: Increased by 9% year-over-year to $3.8 billion.
- Underlying EBITDA: Rose by 14% to $1.6 billion.
- Net Profit: Up 11% to $406 million.
- Free Cash Flow: Surged by 123% to $661 million.
- Dividends: Final dividend set at 7.3 cents per share, 60% franked, bringing the total annual dividend to 17 cents per share, a 13% increase from FY23.
- Share Buyback: Authorized up to $150 million in on-market repurchases.
Operational Achievements
Aurizon made significant strides in operational efficiency and safety during the year. Key operational highlights include:
- Safety Performance: Achieved a 15% reduction in the Total Recordable Injury Frequency Rate (TRIFR) with new safety frameworks targeting fatigue and contractor safety.
- Coal Segment: EBITDA for the coal segment grew by 16% to $528 million, attributed to higher volumes and improved revenue yields.
- Network Segment: EBITDA increased by 14% to $930 million due to higher allowable revenue and an expanded asset base.
- Resource Transportation: Transported 209.6 million tonnes of resource across the Central Queensland Coal Network, a 1% increase from FY23.
Management Commentary
Aurizon's Managing Director & CEO, Andrew Harding, highlighted the company's robust performance:
“Aurizon has delivered a strong result in FY2024, with solid earnings growth and strong free cash flow. Aurizon is tracking well against our growth strategy. As Australia’s largest rail freight operator, we are well-positioned to benefit from demand for commodities and economic growth in Asia.”
Harding also emphasized the company’s resilience and ability to diversify its customer base while extending service offerings across the supply chain. He noted that the cash-generative coal and network business units provide a solid foundation for future investments in bulk and containerized freight markets.
Outlook for FY25
Looking ahead to FY25, Aurizon anticipates Group EBITDA to fall within the range of $1.6 billion to $1.7 billion. The company plans to allocate up to $720 million for capital expenditures and estimates growth investments between $125 million and $175 million.
Aurizon Share Price Snapshot
Despite recent gains, the Aurizon share price is down 2% over the past 12 months. After experiencing an uptick in the last month, the share price has risen by more than 1% in recent trading.
Aurizon’s FY24 results showcase solid financial performance and operational achievements, the current decline in its share price reflects market reactions to these results and broader investor sentiment.