Aurizon Holdings Limited (ASX:AZJ) Announces FY2025 EBITDA and Leadership Restructuring
Financial Performance
Aurizon Group underlying FY2025 EBITDA is expected to be approximately $1,575 million, incorporating two material financial adjustments related to network volumes and bulk contract receivables. Network volumes for FY2025 are anticipated to be around 10 million tonnes lower than the regulatory assumption, leading to revenue under-recovery. This adjustment is expected to defer $50 million of FY2025 earnings, which will be recovered by FY2027 through the revenue cap regulatory process. Additionally, Aurizon will increase the provision for impairment of trade debtors by approximately $50 million in the second half of FY2025.
Additional Financial Updates
Depreciation is expected to be around $730 million, net finance costs approximately $340 million, sustaining capital expenditure about $600 million (including $60 million of transformation capital), and growth capital expenditure around $100 million.
Leadership Realignment
Aurizon is combining Bulk and Containerised Freight under a single Group Executive to unlock synergies and streamline accountability. George Lippiatt, the current CFO and Group Executive Strategy, has been appointed as the new Group Executive Bulk and Containerised Freight. Gareth Long, the current Group Executive Containerised Freight, will take on the role of acting CFO and Group Executive Strategy. Anna Dartnell, the current Group Executive Bulk, will depart from Aurizon. These appointments are effective from 1 July 2025.
Executive Comments
Managing Director and CEO Andrew Harding stated, “These steps reflect our continued focus on execution as we transition into the next phase of Aurizon’s strategy. With the Containerised Freight business now established, and in the context of the ongoing review of our non-operational cost base, it is logical to bring Bulk and Containerised Freight together so we can harness the commercial and operational synergies between the two businesses.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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