Aurizon Holdings announces strategic financial decision

Aurizon Holdings (ASX:AZJ) has announced an extension to their on-market share buy-back program, adding $100 million to bring the total to $250 million. This decision is supported by robust cash flows, including settlements from litigation. As of November 11, 2024, the company has repurchased 38,760,930 shares for approximately $133 million, without affecting its credit rating.

Aurizon's strategic outlook and performance update

Aurizon Holdings has extended its share buy-back program by $100 million, totaling $250 million, due to strong cash flows. The company reported increased coal and network volumes in the first four months of FY2025, although bulk volumes decreased. Containerized freight volumes rose significantly. Despite a projected dip in first-half FY2025 EBITDA, Aurizon upholds its full-year EBITDA guidance of $1,660 million to $1,740 million. The company expects stronger bulk volumes and earnings in the second half of the fiscal year. Aurizon's infrastructure positions it well to leverage global demand for Australian commodities.

Executive insights on buy-back extension and business performance

Our strong cash flows, including those from litigation settlements, provide confidence in extending our share buy-back program while maintaining our credit ratings,' said Andrew Harding, CEO of Aurizon. 'We are strategically positioned with our extensive rail infrastructure and fleet to capitalize on global demands for Australian bulk commodities.