Qube has released its financial year 2025 results which demonstrate significant growth across many parts of its operations.
Qube achieved an underlying revenue of $4.46 billion in FY25 – a 27.3 per cent increase compared to financial year 2024.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 15.4 per cent to $616.2 million year-on-year (YOY).
Qube’s underlying earnings before interest, taxes and amortisation (EBITA) also grew by 18.5 per cent to $377.2 million, while EBITA margins increased to 10.5 per cent compared to 9.5 per cent in FY24.
Underlying net profit after tax and amortisation (NPATA) was recorded at $288 million, 6.2 per cent higher than FY24’s figure.
Underlying earnings per share (EPSA) also increased to 16.25 cents – a six per cent improvement YOY.
Statutory net profit after tax (NPAT) for the period was $51.0 million.
Qube Managing Director, Paul Digney, said the record earnings result benefitted from higher revenue and earnings from most sectors of the business, as well as a combination of organic growth and the contribution from prior year and current period acquisitions.
“Through a continuing focus on developing our operational capabilities and expertise and our strategy to diversify by market and geography, Qube has again delivered solid full year results, with growth across all our key underlying performance metrics,” he said.
“Activity levels remained generally favourable across most of Qube’s core markets, and the diversity of our operations and multiple growth levers again enabled the business to more than offset the earnings impact of challenges in the period.
“The continued improvements in both margins and our Return on Average Capital Employed highlights Qube’s disciplined approach to investment and the operational leverage we’re able to achieve from our infrastructure and other strategic assets.”
“This is particularly well demonstrated by the strong performance of our energy, agri and rail activities (the latter of which benefitted significantly from our grain trading strategy), underscoring Qube’s ability to optimise its existing infrastructure and assets to compete in this market and deliver outcomes for customers.”
Meanwhile, Qube’s Operating Division reported strong underlying revenue growth of 27.4 per cent to $5.4 billion and underlying EBITA growth of 17.4 per cent to $419.5 million.
Overall, EBITA margins for the Operating Division (excluding grain trading revenue and earnings) improved to 11.7 per cent from 10.6 per cent in FY24.
Qube’s grain trading activities generated $898 million of revenue in FY25.
While these activities contributed minimal earnings directly, they supported an increase in earnings across Qube’s agricultural and rail activities through improved asset and infrastructure utilisation.
The EBITA margin, inclusive of the low margin grain trading revenue, was 9.4 per cent.
The result also benefited from a full year’s contribution from the acquisitions completed in FY24, and a partial period’s contribution from the Coleman’s Transport and Melbourne International RoRo & Automotive Terminal (MIRRAT) acquisitions completed in FY25.
Meanwhile, Qube’s Logistics and Infrastructure business unit delivered strong underlying revenue and earnings growth in FY25.
Underlying revenue increased by 57.4 per cent to $2.44 billion and underlying EBITA grew by 20.3 per cent to $287 million, resulting in a decline in EBITA margins to 11.8 per cent (from 15.4 per cent in FY24).
EBITA margins excluding the high revenue low margin grain trading activity improved from 17 per cent in FY24 to 18.5 per cent in FY25.
Based on the current outlook, Qube expects to deliver solid growth in underlying NPATA and EPSA in financial year 2026.
Solid EPITA is expected in the Operating Division with both the Logistics and Infrastructure with the Ports and Bulk business units contributing to the growth.
Qube’s associates are also expected to deliver improved overall earnings of around $5-10 million, with Qube’s 50 per cent stake in Patrick Terminals being the key driver of this.
“Qube’s net interest expense is expected to increase by around $15-$20 million, mainly due to a higher average net debt balance (following the FY25 acquisitions and growth capex as well as higher grain trading related working capital), as well as from lower interest income following the repayment by Patrick in June 25 of the remaining shareholder loans that Qube had provided,” the Qube Board of Directors said in a statement.
“Qube continues to have multiple organic and inorganic growth options across its core markets and continues to be well placed to deliver long term underlying earnings growth.”
In other news, a Bruce Highway integration project has been completed.
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