Channel Infrastructure NZ (CHI) H2 2025 earnings summary

Executive summary

• Delivered strong FY25 financial and operational performance, with EBITDA up 4% year-over-year (excluding Wiri lease), and results in line with guidance.

• Achieved highest Marsden Point fuel throughput since import terminal operations began; Q4 jet throughput was the highest since Q1 2019.

• Strategic acquisition of a 25% interest in the Somerton jet fuel pipeline to Melbourne Airport, which saw record passenger numbers.

• Progressed major growth projects, including Z Energy jet storage and bitumen terminals, both ahead of schedule and on track for 2026 completion.

• Listed on ASX in December, broadening access to capital and investor base.

Financial highlights

• Revenue was $140.2 million, flat year-over-year (excluding Wiri lease, up 4%); EBITDA was $93.4 million, margin 67%.

• Normalised free cash flow rose 5% to $66.9 million; free cash flow conversion improved to 72%.

• Ordinary dividends increased 18% to 13.0 cents per share, payout ratio 80%, with a final dividend above prior guidance.

• Net debt at year-end was $330 million; leverage ratio at 3.6x net debt/EBITDA.

• Maintenance CapEx was $12.3 million; growth CapEx was $27.1 million.

Outlook and guidance

• FY26 EBITDA guidance set at $95–100 million, reflecting growth from new projects and early contract commencements.

• Maintenance capex for FY26 expected at 8–10% of revenue; dividend policy maintained at 70–90% of normalised free cash flow.

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

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