Channel Infrastructure NZ (CHI) H2 2025 earnings summary

Executive summary

• EBITDA grew 4% year-over-year (excluding Wiri lease), driven by CPI escalation, increased throughput, and a full-year Transmix Contract contribution.

• Delivered strong financial and operational performance in FY25, with results in line with guidance and an 18% increase in dividends year-over-year.

• Total shareholder return reached 63% for 2025, significantly outperforming the NZX50.

• Major projects, including jet storage and bitumen terminals, are progressing ahead of schedule and on track for completion in 2026.

• ASX listing completed in December, broadening access to capital markets.

Financial highlights

• Reported EBITDA was NZD 93.4 million, with an EBITDA margin of 67%.

• Revenue grew 4% year-over-year (excluding Wiri lease), reaching $140.2m.

• Net profit after tax was $20.9m, down 19% year-over-year due to higher depreciation and lower lease revenue.

• Free cash flow conversion improved to 72%; normalized free cash flow was $66.9m.

• Ordinary dividends increased 18% to 13.0 cps, with a payout ratio of 80%.

Outlook and guidance

• FY2026 EBITDA expected/guided between NZD 95–100 million, reflecting early project completions and new growth projects.

• Jet fuel throughput growth forecast at 2% for 2026, with modest passenger growth at Auckland Airport and ongoing aircraft availability issues.

• Only NZD 23 million of conversion budget remains, to be spent over 2026–2027.

• Maintenance capex expected at 8–10% of revenue; dividend policy maintained at 70–90% of normalized free cash flow.