By Rhiannon Hoyle

Australian rail-freight operator Aurizon Holdings on Monday reported a 2% fall in first-half profit and said it expects annual earnings at the low end of its guidance range.

The company reported a net profit of 233 million Australian dollars (US$148.0 million) for the six months to Dec. 31, down from A$237 million a year earlier. Analysts expected a profit of roughly A$227.3 million, according to data compiled by Visible Alpha.

Aurizon's bottom line got a boost from proceeds from the settlement of legal matters, the company said. Underlying profit was 14% lower on the year-prior period, at A$205 million.

Underlying earnings before interest, taxes, depreciation and amortization, or Ebitda, fell by 4% to A$814 million.

Aurizon said it expects full-year underlying Ebitda at the lower end of a A$1.66 billion-A$1.74 billion guidance range. The company said it also expects annual sustaining and growth capital expenditure to be at the lower end of their respective guidance ranges.

Directors declared an interim dividend of 9.2 Australian cents a share, down 5% versus a year ago. Aurizon said will at A$50 million to an ongoing on-market buyback, now worth up to a total A$300 million.

The company reported a 6% rise in above-rail coal volumes, and a 3% gain in volumes in its network business. Volumes in its bulk business, which have been a focus for growth, were down 19% year over year.

"Today's results underline the continuing strength of Aurizon's two largest business units, Network and Coal," said Chief Executive Andrew Harding. "Both businesses are performing solidly and broadly in-line with expectations in the first half."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

February 16, 2025 17:13 ET (22:13 GMT)

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