KiwiRail’s FY25 results reflect a year in which the State-Owned Enterprise delivered on its operating surplus target, grew its freight volumes, saw substantial improvement in freight customer satisfaction, retained operating margin and banked significant savings from the first full year of its change programme, despite economic headwinds and other challenges.
The company delivered an operating surplus of $111m for its services business, up from $105.6m in FY24 and ahead of the Statement of Corporate Intent target of $110m.
Rob Jager, the Acting Chair during FY25, says that behind the pleasing headline numbers lay a year of hard work preparing the foundations for growth.
“The company brought $1.1 billion worth of new assets into service, moved the Interislander to a two-ship fleet as part of the preparation for new ferries in 2029, implemented a revised, more focused strategy and embedded our customers’ success as our reason for coming to work every day.
“We have achieved all this while maintaining a relentless focus on improving our safety performance and pursuing new commercial opportunities.”
“While we remain far from satisfied with our safety performance we continue to make progress in terms of systems, processes, culture and safety outcomes with an 18 per cent fall in total recordable injuries, a 19 per cent reduction in High-Potential Near Miss events , an indicator of critical safety risks, and a 7 per cent reduction in the Total Recordable Injury Frequency Rate.
“Our people are the heart of our business, and nothing is more important than their safety and wellbeing. There is much more work to do and we remain committed to ensuring everyone goes home safely every day and we are making further system level pivots to continue our strong focus on this priority.”
“We also continue to deliver on the sustainability front, with rail freight meaning one million fewer heavy truck trips per year.”
Chief Executive Peter Reidy says the result reflected the efforts the organisation had made in a challenging environment.
“The first half of FY25 saw the business face revenue challenges including the closure of the WPI plant and Oji Mill and the short-term reduction in coal transport capacity resulting from the Tawhai Tunnel closure and remediation, near Reefton, but the second half of the year saw better results on the back of improved service reliability, the re-opening of the Tawhai Tunnel, improved export volumes and the return of some customers to rail.
“At the end of the year, total freight volumes were up 2.7 per cent. There was also a significant 45 point improvement in the freight customer net promoter score over the year.
Interislander also had an improved year, with cancelled sailings reduced by 40 per cent over the prior year (excluding weather cancellations) and commercial vehicle market share growing. The commercial vehicle customer net promoter score improved 21 points, reflecting improvements in communication with customers and in assistance offered when there is disruption.
The Scenic business performed well, with a lift in revenue of 28 per cent despite a slower than expected recovery of overall inbound tourism numbers, and the Property business unit delivered a solid performance.
Mr Reidy says during the year the Infrastructure business unit delivered upgrades including 37.5km of track works, 17 turnouts, 15 track level crossings and three active level crossings and, 10km of signals cable replacement under the Rail Network Investment Programme.
FY25 also saw the completion of significant capital projects worth circa $1.1 billion delivering improved network performance. The projects included the Hillside and Waltham depots which were both completed under budget, the Wiri to Quay Park “third main” line, the electrification of the line between Papakura to Pukekohe.
Mr Reidy says FY25 had set KiwiRail up well to build on its performance in FY26 and beyond.
“We will continue to strive for the improved on-time safe performance and delivery that our customers seek.”
1Operating surplus represents earnings before depreciation and amortisation, interest, impairment, capital grants and fair value changes.
Key Figures
|
|
30 June 2025 $m |
30 June 2024* $m |
Percentage change |
|
|
|
|
|
|
Operating revenues |
1,066.3 |
1,043.2 |
2.2% |
|
Operating expenses |
(955.1) |
(937.6) |
1.9% |
|
Operating surplus |
111.2 |
105.6 |
5.3% |
|
|
|
|
|
|
Capital Grants |
596.1 |
575.9 |
3.5% |
|
Depreciation and amortisation expenses |
(144.9) |
(149.9) |
(3.3%) |
|
Foreign exchange and commodity |
6.9 |
72.4 |
(90.4%) |
|
Impairment |
(946.8) |
(1,018.3) |
(7.0%) |
|
Insurance proceeds |
52.6 |
4.6 |
1035.6% |
|
Movement in fair value of investment properties |
(64.9) |
(13.3) |
(387.6%) |
|
Other income |
156.5 |
47.8 |
227.6% |
|
Other costs |
(188.9) |
(267.8) |
(29.5%) |
|
Income tax expense |
- |
- |
- |
|
Net (deficit) after taxation |
(422.2) |
(643.0) |
(34.3%) |
|
|
|
|
|
|
Final dividend |
- |
- |
- |
|
Dividend Payment Date |
N/A |
||
*30 June 2024 figures are restated
Comparison with Statement of Corporate Intent (SCI)
We have exceeded our FY26-FY28 SCI forecast operating surplus target for FY25 of $110m.
Consistent with the Statement of Corporate Intent, KiwiRail will not pay a dividend for the year ended 30 June 2025.