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Growth Forecast for Aurizon Holdings

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Aurizon Holdings, an Australian rail freight company, has announced its earnings recovery forecast for the 12 months ending in June. The company faced challenges in fiscal year 2023 due to factors such as rainfall, mine output issues, and skills shortages.

In the next fiscal year, Aurizon expects underlying earnings before interest, tax, depreciation, and amortization (EBITDA) to be between AUD 1.59 billion and AUD 1.68 billion. This forecast is based on anticipated growth in revenue, profit, and volume in its coal and bulk divisions.

For fiscal year 2023, Aurizon projects underlying EBITDA to be at the lower end of the previously guided range of AUD 1.42 billion to AUD 1.47 billion. This is primarily due to prolonged wet weather, mine production challenges, and labor shortages affecting the March quarter.

Aurizon’s strategy day coincided with the earnings update, where the company unveiled new targets. With the acquisition of One Rail and the pursuit of other bulk growth opportunities, Aurizon aims to achieve a larger market share of 25-30% in the estimated addressable bulk EBITDA market of AUD 1.7 billion by fiscal year 2030.

Additionally, Aurizon aspires to increase Containerised Freight volumes to more than 500,000 TEUs by fiscal year 2030.

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