DBI Reports 17% Profit Rise and 3.6% Terminal Charge Increase for FY26

• Terminal Infrastructure Charge revenue up 4.2% to $151.1 million
• Statutory net profit after tax rises 17.1% to $43.1 million
• Terminal Infrastructure Charge increased by 3.6% to $3.72 per tonne for FY26
• Q2 distribution declared at 5.875 cents per security, maintaining full-year guidance
• Ongoing $405.5 million in non-expansionary capital projects underway

Strong Financial Momentum

Dalrymple Bay Infrastructure Limited (DBI) has delivered a robust performance for the six months ending June 2025, underscoring its position as a key player in Australia's coal export infrastructure. The company reported a 4.2% increase in Terminal Infrastructure Charge (TIC) revenue to $151.1 million, alongside a 5.3% rise in EBITDA to $143.8 million. Most notably, statutory net profit after tax surged 17.1% to $43.1 million, reflecting both operational efficiencies and strategic revenue initiatives.

Funds from Operations also climbed 13.8% to $84.1 million, reinforcing DBI’s strong cash-generating capability. The company’s balance sheet remains solid with borrowings of $1.724 billion and an investment grade credit rating, providing a stable foundation for future growth.

Terminal Infrastructure Charge and Distribution Outlook

DBI announced a 3.6% increase in the Terminal Infrastructure Charge to $3.72 per tonne effective from July 1, 2025, driven by inflation adjustments and the addition of capital expenditure to the NECAP asset base. This incremental pricing supports the company’s revenue growth trajectory while maintaining competitiveness in the Bowen Basin coal export market.

The company declared a Q2 distribution of 5.875 cents per security, consistent with prior guidance, bringing total distributions for the half-year to 11.75 cents. DBI reaffirmed its full-year distribution guidance of 24.5 cents per security for the 2025/26 financial year, targeting a sustainable payout ratio between 60% and 80% of Funds from Operations. Management continues to aim for distribution growth of 3-7% annually, subject to market conditions and business developments.

Capital Projects and Operational Excellence

DBI is advancing approximately $405.5 million in non-expansionary capital projects (NECAP), which are expected to be completed over the next two to three years. These projects, including the recent addition of $30.4 million to the NECAP asset base, are designed to enhance operational efficiency and underpin future revenue streams without expanding terminal capacity.

Safety and environmental stewardship remain priorities, with DBI reporting zero fatalities, serious injuries, or environmental incidents during the period. The company’s operational discipline and focus on sustainability initiatives align with broader industry expectations and investor demands.

Strategic Outlook

Looking ahead, DBI plans to pursue organic revenue growth through new initiatives and NECAP project execution, while exploring capacity optimization and potential diversification opportunities. The company is also assessing the economic viability of the 8X Project, aimed at meeting long-term metallurgical coal export demand from the Bowen Basin.

Maintaining an investment grade credit rating remains a strategic priority, with ongoing efforts to optimize debt structure and liquidity. DBI’s management signals confidence in delivering sustained returns to securityholders amid evolving market dynamics.

Bottom Line?

DBI’s half-year results set a confident tone for sustained growth, but investors will watch closely how capital projects and market conditions shape future returns.

Questions in the middle?

• How will DBI’s NECAP projects impact terminal capacity and future revenue streams?
• What are the prospects and timelines for the 8X Project and its potential market impact?
• How might fluctuations in global metallurgical coal demand affect DBI’s pricing and distribution targets?