Annual results show KiwiRail delivering on plan

• Operating surplus was $162 million, ahead of the published target of $160 million 
• Total freight volumes 3.5bn net tonne kilometres   
• Completion of significant capital projects with a value of more than $1.1 billion 

KiwiRail’s FY26 results show strong momentum and progress on its customer-led strategic reset plan. 

The operating surplus was $162 million, ahead of the published target of $160 million. Freight revenue increased by 11 per cent to $504.4 million, supported by approximately 3 per cent growth in freight volumes and total freight volumes of around 3.5 billion net tonne kilometres. 

Chair Suzanne Tindal says the results for FY26 are encouraging. 

“They reflect daily decisions being made by many people across the organisation and in the field to do things better than they did last year.” 

KiwiRail's focus is on improving operational performance, financial sustainability, delivery of major capital programmes and long-term value for New Zealand. 

That objective was supported by the collective expertise of the Board, which since late FY25 had undergone significant renewal, and now has a broad mix of experience across public sector leadership, finance, freight, logistics, digital transformation and technology management, and infrastructure.  

Ms Tindal says KiwiRail has a critical role to play in New Zealand’s integrated transport system. 

“We move around a quarter of the country’s export freight, connect the North and South Islands through Interislander, support more than 24 million metro passenger journeys each year, and contribute an estimated $3.3 billion of value to New Zealand annually.  

“We continue working to enable our customers’ growth by delivering safer operations, stronger service reliability, improved customer loyalty, stronger employee engagement, improved productivity and disciplined financial performance, supported by the commitment of our people and the trust of customers, partners, shareholder and funders. 

Chief Executive Peter Reidy says “safety remains our highest priority, and fundamental to everything KiwiRail does.” 

High Potential safety incidents reduced by 52 per cent to 43 incidents. Total recordable injuries reduced by 12 per cent to 214 injuries.  

“These improvements reflect investment in a safety culture focused on individual care, stronger frontline leadership, critical risk management and critical control assurance.  

“Getting our people home safe is not a target we balance against others. It is the outcome of everything else.”  

Ms Tindal says the improved financial results were being driven by improvements in KiwiRail’s operational performance. 

Freight delivery in full and on time for all sectors increased by 3 per cent to 90 per cent, while Interislander reliability, excluding weather, remained strong at 99 per cent through the first full year of operating a two-vessel fleet.   

KiwiRail also continued to deliver on the investment in major programmes and projects.  

Auckland's metro network was a major focus of investment and operational effort during the year as KiwiRail completed the final push to prepare for the opening of City Rail Link. 

The DM locomotives which will revitalise the KiwiRail fleet, particularly in the South Island, continue to arrive and there are currently seven in service, with a further six undergoing commissioning work.  

One thousand new wagons have now been assembled at Hillside in Dunedin, and all the upgrade programmes there and at Waltham Mechanical Facilities have been completed. 

Mr Reidy says KiwiRail also continued to support the new ferries and infrastructure programme led by Ferry Holdings. 

 “We welcomed the confirmation that KiwiRail will operate the two new rail-enabled Cook Strait ferries, and we will continue to work with Ferry Holdings Ltd, port partners and other stakeholders to support the new infrastructure and a smooth transition into service.  

Ms Tindal says KiwiRail entered FY27 with a strengthened operational platform.  

“FY27 will be about converting momentum into sustained growth, stronger customer outcomes, improved productivity and the delivery of long-term value for New Zealand.”   

KiwiRail Key Figures   

Comparison with Statement of Corporate Intent (SCI)  

We have exceeded our FY26-FY28 SCI operating surplus target for FY26 of $160m.   

Consistent with the Statement of Corporate Intent, KiwiRail will not pay a dividend for the year ended 30 June 2026.  

Notes 

KiwiRail operates an integrated services and infrastructure business. The services business operates on a commercial basis, and is expected to deliver an operating surplus, while the infrastructure business, focussed on the network, is largely funded through Government contributions. 

KiwiRail’s statutory result is significantly impacted by non-cash impairment charges required under accounting standards. These charges reflect the accounting assessment of the deficit in the future recoverable value of mainly infrastructure assets compared to their carrying value as at 30 June 2026, based on the estimated commercial cash flows used for valuation purposes. The primary driver of this charge is the $1.19 billion impairment of City Rail Link assets. 

While rail delivers substantial public, economic and environmental benefits to New Zealand, those benefits are not reflected in the estimated commercial cash flows used for accounting impairment testing for these assets. This is reflected in the high impairment figure in the accounting valuation of the Group's assets and should not be interpreted as a measure of the commercial performance of KiwiRail's services businesses. 

The full Integrated Report for FY26 can be found here.