Qube’s EBITA Jumps 18.5% to $377M in FY25 Record Performance

Record Growth Despite Headwinds

Qube Holdings Limited, Australia's largest integrated import and export logistics provider, has delivered a record financial year for FY25. The company reported underlying revenue growth of 27.3% to $4.46 billion and an 18.5% increase in EBITA to $377.2 million. This robust performance was achieved despite significant operational challenges, including industrial action at Australian ports and severe weather disruptions in key regions.

Underlying net profit after tax and amortisation (NPATA) rose 6.2% to $288 million, while earnings per share increased by 6% to 16.25 cents. The board responded to these strong results by increasing the full-year dividend by 7.1% to 9.8 cents per share, fully franked, reflecting confidence in the company’s ongoing growth trajectory.

Operational Divisions Drive Earnings

The Logistics & Infrastructure division was a standout, with revenue surging 57.4% to $2.44 billion and EBITA growing 20.3% to $287 million. While margins softened slightly due to the inclusion of low-margin grain trading activities, excluding these, margins improved significantly, underscoring operational efficiency gains. Grain trading itself generated nearly $900 million in revenue, supporting asset utilisation across agri and rail sectors.

The Ports & Bulk division also contributed solidly, with revenue up 3.5% to $2.02 billion and EBITA rising 10.2% to $183.1 million. Despite the industrial action impacting earnings by approximately $10 million, the division improved margins through disciplined cost control and productivity enhancements. Growth in energy-related logistics and new contract wins, including projects with Iluka, Chevron, and Rio Tinto, position the division well for FY26.

Strategic Acquisitions and Asset Optimisation

Qube’s acquisition strategy continues to underpin growth, with full-year contributions from FY24 acquisitions and partial-year impacts from the recent purchases of Coleman and Melbourne International RoRo & Auto Terminal (MIRRAT). These acquisitions enhance Qube’s service capabilities and geographic reach, particularly in Victoria’s automotive logistics market.

However, not all assets performed well. The company recognised a $127.6 million impairment on its 65% stake in the MLP Interstate Rail Terminal joint venture, reflecting ongoing operational challenges and a weak outlook for this asset.

Outlook and Market Position

Looking ahead, Qube expects solid growth in underlying NPATA and earnings per share in FY26, driven by both core divisions and improved associate earnings, notably from Patrick Terminals. The company anticipates higher net interest expenses due to increased debt from acquisitions and working capital requirements but remains confident in its multiple organic and inorganic growth opportunities.

Qube’s disciplined approach to asset leverage, cost management, and operational improvements, combined with a diversified portfolio, has enabled it to navigate a complex operating environment successfully. The company’s focus on safety and sustainability, including a 17% reduction in operational emissions intensity year-on-year, further strengthens its long-term positioning.