Qube Holdings Delivers 27% Revenue Surge Amid Strategic Expansion and Board Renewal
Qube Holdings reported a robust FY25 with significant revenue and earnings growth, strategic acquisitions, and a refreshed board leadership. Despite operational challenges, the company raised its dividend and confirmed solid FY26 earnings guidance.
- Underlying revenue up 27% and EBITA up 18.5% in FY25
- Strategic acquisitions including Melbourne RoRo terminal and Coleman business
- 7.1% increase in full-year dividend to 9.8 cents per share
- Board changes with new appointments and Chairman Allan Davies stepping down
- Positive safety performance despite a recent fatality at Narromine facility
Robust Financial Performance Despite Headwinds
Qube Holdings Limited has once again demonstrated the strength of its diversified logistics and infrastructure business by delivering solid growth in FY25. The company reported a 27% increase in underlying revenue to $4.46 billion and an 18.5% rise in EBITA to $377.2 million, despite facing challenges such as extreme weather, industrial action, and shifting market dynamics in resource sectors.
Underlying earnings per share rose 6% to 16.25 cents, supported by improved EBITA margins excluding grain trading, which climbed to 10.5%. This reflects Qube’s disciplined approach to leveraging its assets, managing costs, and driving productivity improvements across its operations.
Strategic Acquisitions and Market Expansion
FY25 was marked by key acquisitions that expanded Qube’s footprint and capabilities. The completion of the Melbourne International RoRo & Auto Terminal acquisition, now rebranded as AAT Webb Dock West, strengthened Qube’s position in Victoria’s automotive logistics market. Additionally, the acquisition of the Coleman business in Western Australia opened access to the Security Sensitive Ammonium Nitrate (SSAN) market, a strategic growth area.
Qube also enhanced its agricultural services, with bulk grain exports through its terminals more than doubling to 3.08 million tonnes. Other acquisitions, such as the Narrabri Agri facilities and Albany Bulk Handling, further diversified the company’s commodity exposure and geographic reach.
Safety and Governance Amid Change
While Qube reported a positive overall safety performance, the tragic death of a contractor at its Narromine facility cast a shadow over the year. The company continues to support investigations and has emphasized safety as a top priority, with ongoing initiatives under the QUBESAFE program aimed at strengthening its safety culture.
Governance changes were significant in FY25. Chairman Allan Davies announced his retirement after 14 years on the board, including eight as chairman. He will be succeeded by John Bevan, a seasoned executive with extensive leadership experience. Mick McCormack also joined the board, bringing deep expertise in energy infrastructure. These changes signal a new chapter in Qube’s leadership as it pursues further growth.
Dividend Growth and Outlook
Reflecting confidence in its financial strength and future prospects, Qube increased its full-year dividend by 7.1% to 9.8 cents per share, fully franked. The company confirmed solid underlying earnings growth guidance for FY26, supported by its diversified portfolio and multiple organic and inorganic growth opportunities.
Despite ongoing global economic and geopolitical uncertainties, Qube’s broad market exposure across containers, agriculture, energy, and resources positions it well to navigate challenges and capitalize on emerging opportunities.
Bottom Line?
Qube’s strategic acquisitions and leadership renewal set the stage for sustained growth, but safety and operational challenges remain key watchpoints.
Questions in the middle?
- How will Qube address safety risks following the recent fatality at Narromine?
- What impact will the new board leadership have on Qube’s strategic direction?
- How effectively will Qube integrate its recent acquisitions to drive future earnings?
