Channel Infrastructure NZ Limited

FY25 EBITDA was $93.4 million and EBITDA margin was 67%. Excluding the impact of the legacy Wiri lease, EBITDA grew 4%. Revenue was broadly flat year on year, offsetting a $5 million nominal step-down in fixed terminal fee and the Wiri lease expiry with CPI indexation and a full-year transmix contribution. Normalized free cash flow was $66.9 million, free cash flow conversion was 72% versus 67% last year, and net debt closed at $330 million. Leverage was 3.6x net debt to EBITDA. The Board declared a final dividend of $0.0675 per share. For FY26, management expects EBITDA of $95 million to $100 million, with approximately 95% of revenues indexed by the 2026 PPI of 3.25% and jet fuel growth of about 2%.

Rob Buchanan framed the year as a strong execution period and emphasized that Channel is building a “world-class operator” reputation to attract and retain global customers. He pointed to operational reliability, higher throughput, improved customer efficiency, and growth options at Marsden Point as evidence the strategy is working. His tone was confident but disciplined, stressing that the company is selective about capital and will prioritize viable projects.

Alexa Preston said FY25 delivered a solid result in line with guidance, with EBITDA of $93.4 million, margin of 67%, normalized free cash flow of $66.9 million, and conversion of 72%. She noted lower financing costs from hedging and the November 2024 refinancing, which reduced the all-in cost of drawn facilities by 0.6%, while higher depreciation reflected asset revaluations and capitalized new assets. She also said maintenance CapEx was $12.3 million and growth CapEx was $27.1 million, net debt was $330 million, leverage was 3.6x, and there is no debt due for refinancing this year after a 1-year extension to banking facilities.

Analysts focused on the higher dividend, asking whether it was effectively a special dividend; management said the Board intentionally chose to make it an ordinary dividend. Questions on the biorefinery timetable and economics drew a response that the project remains broadly on track, with no change to the earlier site revenue guidance of $6 million to $7 million, while Channel remains a landlord and infrastructure provider. Analysts also asked about OpEx and growth spend; management said FY26 guidance already embeds growth investment, costs are expensed, and the company expects to remain disciplined even as it continues to pursue multiple new opportunities.