Australian rail-freight operator Aurizon Holdings raised its dividend as it reported a 19% rise in annual net profit on higher earnings, and forecast steady to slightly higher earnings in the year ahead.

Aurizon reported a net profit of 362 million Australian dollars, equivalent to US$256 million, for the year through June, up from A$303 million a year earlier.

Directors declared a final dividend of 10.5 Australian cents a share, taking its full-year payout to 23 Australian cents a share. That is 46% higher than a year earlier and compares to guidance of between 22-23 Australian cents a share.

Underlying earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 9% to A$1.724 billion, in line with guidance of between A$1.68 billion and A$1.75 billion.

Aurizon said it expects underlying Ebitda to be between A$1.725 billion and A$1.775 billion in the coming year. It forecast annual dividends of between 23 and 24 Australian cents a share.

The midpoint of Ebitda guidance was roughly 3% below a consensus estimate collated by Visible Alpha. Shares were down 10% early in Sydney.

The company said it completed a A$250 million buyback, but didn't announce further share purchases. Some analysts had expected an additional buyback to be approved.

"FY2026 delivered a strong result for shareholders with higher earnings, strong cash generation, a higher dividend and completion of the on-market share buyback," said Chief Executive Andrew Harding.

A record result in Aurizon's bulk business, a focus for growth, "reinforces our confidence in the long-term opportunity to grow our position in transportation of bulk commodities, agriculture and critical minerals," Harding said. Bulk Ebitda rose 38% from a year earlier.

Coal Ebitda was 2% higher on a year earlier, said the company, which separately announced a new long-term contract at operations run by BHP and Mitsubishi in Australia's Queensland state.