Qube Holdings Limited

Qube reported group underlying EBITDA up 9.8% year over year, and underlying NPATA of $157.5 million, up 10.1% versus the first half of FY25. EBITDA margins improved from 10% to 10.6% excluding grain trading. Net finance costs increased by $9 million versus the prior period, partly due to higher average debt balances and no interest income on repaid shareholder loans to Patrick. The board declared an interim dividend of $0.0535 per share, fully franked, payable on 9 April. Capital expenditure was $216 million gross in the half, with $53 million net CapEx after $163 million of divestment proceeds. Net debt decreased by circa $51 million, liquidity was over $1.1 billion, and gearing was 31.6%. For FY26, management expects solid EBITDA growth in the operating division, positive associate earnings, and group NPATA/EPSA growth of 6% to 10%.

Paul Digney described the half as another record result, emphasizing the mix of organic growth and acquisitions, plus the benefit of diversification across the portfolio. He repeatedly pointed to the business’s resilience, saying favorable activity in some areas helped offset softer spots elsewhere. His tone was confident but measured, especially around the scheme process and around cautious parts of the outlook such as agri volumes, renewable project timing, and some Ports and Bulk timing issues.

Mark Wratten focused on margin expansion, balance sheet strength, and cash generation. He highlighted EBITDA margin improvement from 10% to 10.6% excluding grain trading, the $9 million increase in net finance costs, and underlying NPATA of $157.5 million. He also outlined $216 million of gross CapEx, $163 million of asset sale proceeds, $53 million of net CapEx, $81 million of distributions from associates, debt reduction of about $51 million, liquidity above $1.1 billion, and gearing of 31.6%. He framed the interim dividend of $0.0535 per share as being at the top end of the 60% payout ratio, and said the company has room to consider a special dividend to optimize franking credits before completion of the deal.

Analysts pressed on grain trading, asking whether it was materially improving throughput and whether Qube could eventually capture more margin; management said the strategy has been very successful, with more than 50% of grain moving through its trading arm, but noted pricing and FX are currently weaker. Questions also focused on the softer FY26 Ports and Bulk guide, with management pointing to wind-farm setup costs, contract timing, industrial relations recovery, and delays such as Iluka Balranald slipping about three months. The Q&A also covered the scheme process, with management citing ACCC and FIRB approvals, a 4 to 6 month timeline, and no expectation of major issues because it is an ownership change rather than a merger.