By Rhiannon Hoyle

Australian rail-freight operator Aurizon Holdings on Monday raised its annual dividend guidance as it reported an increase in first-half profit, and said it has decided to keep the whole of its network business following a review.

The company reported a statutory net profit of 235 million Australian dollars, equivalent to US$166 million, for the six months to Dec. 31, up from A$233 million a year earlier. Underlying profit, stripping out significant items, rose to A$237 million from A$205 million, Aurizon said.

Analysts expected underlying profit of roughly A$219.4 million, according to a consensus estimate compiled by Visible Alpha.

Directors declared an interim dividend of 12.5 Australian cents a share, up from 9.2 Australian cents a year ago. The company now expects to pay a full-year dividend of between 22-23 Australian cents per share, up from an earlier estimate of 19-20 Australian cents per share.

Aurizon also extended its on-market buyback by A$100 million, to A$250 million. Shares in the company were 5.6% higher in early Sydney trade.

"Today's results underscore the strength of Aurizon's two largest business units, Network and Coal, and the continued growth of Bulk and Containerized Freight," said Chief Executive Andrew Harding. Higher volumes underpinned a 4% rise in group revenue year over year.

"We are also making good progress executing against key strategic objectives," said Harding.

Aurizon has decided to retain the existing above- and below-rail integrated model of its network business following a review of the current structure, he said.

"The review, supported by external advisers, assessed a broad range of whole-of-business and minority structure options for Network including monetization and demerger scenarios," Harding said. "We determined that retaining 100% ownership of Network remained the option that best delivers long-term value for our shareholders."

Aurizon separately said it has appointed Ian Wells as chief financial officer. Wells spent 13 years at iron-ore giant Fortescue to 2023, including five years as CFO.

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

(END) Dow Jones Newswires

February 15, 2026 19:02 ET (00:02 GMT)

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