Qube’s Underlying EBITA Climbs 18.5% to $377 Million in FY25
Qube Holdings Limited reported robust FY25 underlying revenue growth of 27%, driven by strong performances in its Logistics & Infrastructure and Ports & Bulk divisions, while declaring a 71% increase in full-year dividends. Despite challenges including industrial action and weather disruptions, Qube expects continued earnings growth in FY26 supported by strategic acquisitions and operational resilience.
- Underlying revenue growth of 27.3% to $4.46 billion
- Underlying EBITA increased 18.5% to $377.2 million
- Full-year fully franked dividend up 71% to 9.8 cents per share
- Acquisitions of Coleman and MIRRAT completed in FY25
- Impairment of $127.6 million on Moorebank Interstate Terminal investment
Strong Underlying Growth Amid Operational Challenges
Qube Holdings Limited delivered a solid financial performance for the year ended 30 June 2025, with underlying revenue rising 27.3% to $4.46 billion and underlying EBITA climbing 18.5% to $377.2 million. This growth was primarily driven by the Operating Division, where Logistics & Infrastructure revenue surged 57.4%, largely due to a significant ramp-up in grain trading activities, while Ports & Bulk revenue grew a more modest 3.5%.
Despite a statutory net profit after tax attributable to members of $51.0 million, which was impacted by discontinued operations and non-recurring items, the continuing operations net profit stood at a healthier $113.2 million. The statutory results were weighed down by a $127.6 million impairment of Qube’s investment in the Moorebank Interstate Terminal joint venture, reflecting ongoing operational challenges and a weak outlook for this asset.
Strategic Acquisitions and Asset Sales Bolster Growth
During FY25, Qube completed the acquisitions of Coleman, an integrated transport and logistics business supporting the Security Sensitive Ammonium Nitrate supply chain in Western Australia, and the Melbourne International RoRo & Auto Terminal (MIRRAT), now rebranded as AAT Webb Dock West. These acquisitions expanded Qube’s footprint in key markets and are expected to contribute to earnings growth in FY26.
Qube also completed the sale of its freehold property at Minto and surplus rolling stock, generating proceeds of approximately $247.7 million before tax and transaction costs. These sales are expected to reduce future interest expenses without materially impacting operational earnings.
Dividend Increase Reflects Confidence and Positive Outlook
Reflecting its record underlying earnings and positive outlook, Qube’s Board declared a fully franked final dividend of 5.70 cents per share, bringing the full-year dividend to 9.80 cents per share, a 71% increase over FY24. The dividend payout ratio stands at 60% of underlying earnings per share pre-amortisation, consistent with the company’s targeted range. Notably, the dividend reinvestment plan has been suspended for the final dividend.
Safety, Innovation, and Sustainability Remain Priorities
Qube maintained a strong safety performance in FY25, with a 14% reduction in its Total Recordable Injury Frequency Rate. The company continued to embed its BeSafe program, focusing on safety culture, training, and leadership development. Innovation initiatives included partnerships leveraging artificial intelligence to improve operational efficiency and safety, alongside expanded cybersecurity training.
On the sustainability front, Qube reported a 5% increase in Scope 1 and 2 greenhouse gas emissions tied to business growth but achieved a 17% reduction in overall operational emissions intensity year-on-year. The company is advancing decarbonisation efforts through renewable energy uptake and trials of low-carbon technologies in freight and terminal operations.
Governance and Leadership Transitions
Chairman Allan Davies announced his intention to retire following 14 years on the Board, with John Bevan appointed as his successor. The Board also welcomed new Non-Executive Directors Mick McCormack and James Fazzino, enhancing its expertise in energy infrastructure and agribusiness sectors. These leadership changes align with Qube’s focus on governance renewal and strategic oversight.
Outlook for FY26
Qube expects to continue delivering underlying earnings growth in FY26, supported by organic expansion and contributions from recent acquisitions. The Logistics & Infrastructure division anticipates strong earnings growth driven by MIRRAT and agri-related activities, while Ports & Bulk expects modest growth with improved energy sector contributions and resolution of industrial action impacts. Interest expenses are forecast to rise due to higher net debt from acquisitions and capital expenditure, partially offset by lower base rates.
Capital expenditure guidance for FY26 is $600–$650 million, with planned asset sales of $120–$140 million. The company remains vigilant on risks including economic conditions, industrial relations, and weather events, while leveraging its diversified operations and strategic assets to sustain growth.
Bottom Line?
Qube’s FY25 results underscore its operational resilience and strategic momentum, but investors should watch closely the recovery of the Moorebank asset and industrial relations dynamics in FY26.
Questions in the middle?
- How will Qube manage the financial and operational recovery of the Moorebank Interstate Terminal joint venture post-impairment?
- What are the potential impacts of ongoing or future industrial actions on Qube’s ports operations and earnings?
- How will the recent Board and executive leadership changes influence Qube’s strategic direction and capital allocation?
