Good morning all and thank you for joining us this morning to discuss another solid financial performance. I'm joined in the room by Qube's CFO Mark Wratten and Head of Investor Relations Paul Lewis. As usual, I'll kick off the call with a summary of our full year 2025 highlights followed by some comments on the divisional performance. I'll then hand over to Mark to discuss the key financial information. I'll then turn back to the outlook before taking your questions. Let's get started. Turning to the highlights slide 6 results overview, Qube has once again delivered a solid full year result with growth across all our underlying performance metrics. This result again demonstrates the resilience and the financial strength of our business as well as the benefits that we derive from our diversification across markets and geographies.
Activity levels remain mostly favorable across our core markets throughout the year and again the strategic diversity of our operations enable the business to more than offset any earnings impact from any challenges in the period. Turning to slide 7 safety performance, pleasingly, the strength of our financial performance is also matched by a positive safety performance. Our TRIFR has decreased by 14%, our LTIFR and SIPR remain within the target range and below a score of 1. Importantly, we also achieved or exceeded all of our internal leading targets for the year, exceeding leading KPIs such as critical Risk Verifications, Safety Leadership, and Safety Engagements with workers insight which all form a part of our strong safety leadership and awareness culture at Qube. This year we are further enhancing this with the rollout of our new BE Safe Leadership and Safety Awareness program.
Returning to our financial performance on slide 8 and the theme of diversification, this slide illustrates both how that benefits Qube in the terms of revenue and how it helps Qube insulate the business against headwinds and disruption like we experienced in the year such as industrial action early in the year, extreme weather events in the second half of the year, and the suspension of some of our customers' mining operations. As you will see on the slide, we still achieve growth in most states and in New Zealand 2025 despite these headwinds. Slide 9 return on average capital employed, when I spoke at last year's results, I said we were revising our medium term target from 10% to at least 12%. As this slide shows, we remain well on track towards this new target.
The continuing improvement highlights Qube's disciplined approach to investment and operational leverage that we've been able to achieve from our infrastructure and other strategic assets as we grow. Slide 10 Segment overview. You're all familiar with this slide, so I won't labor on it. Suffice to say it shows the continuous growth path that we've been able to achieve in earnings over the last five years. Now turning to our key markets, slide 11, Qube's key markets, as we've come to expect, strong performance in some areas helped balance out some challenges in others. Containers remains relatively stable, Patrick's market share normalized back to 42% as expected.
As guided.
Our container logistics activities continue to deliver and add growth in most regions. Agri made a strong contribution and I'll dive into that shortly. As forecasted, automotive revenues were down on the prior period as the quarantine-related backlog cleared and storage volumes reduced, and industrial action in the period also had an impact to earnings in this sector. We saw continued profit improvement in forestry, in part aided by a full year's benefit of major cost reductions in program in New Zealand from the prior year and from better than expected log export volumes in Australia. Mine suspensions and adverse weather events created some challenges in our resources business, especially in the second half of the year, but overall we achieved steady volumes across most commodities and the Colemans acquisition performed in line with internal expectations.
Energy once again achieved a strong full year performance for us and we saw some impact of profits in our general stevedoring business and some ports in the first half of the year due to industrial strike action taken by the MUA, which was all resolved by February. Now turning to divisional performance Slide 13. Operating divisions for the operating division, revenue for the year was inflated due to the full year of grain trading and grew by 27% from the prior year, and more pleasingly, the operating division's EBIT grew by 17.4%. I'll go into each business unit. Now turning to the logistics and infrastructure business. Slide 14. Logistics and infrastructure profits jumped around 20% and overall margins increased by 1.5% for the year. Grain-related activity delivered a good portion of the growth to the year and I'll talk a little more about this on the next slide.
The core containerized business also saw growth and margin improvement thanks to new business wins and productivity efficiencies achieved, including increased volumes at Moorebank, which I'll touch on soon. A full period of the Pinnacle acquisition and additional growth in New Zealand also assisted the result. AAT performed weaker, mainly due to a reduction in storage and ancillary services, and while there were lengthy delays with the ACCC's approval for the MIRRAT acquisition, we were pleased. The commission accepted the undertaking that we proposed and we completed that acquisition in May. Slide 15. Qube Agri and grain trading update. Full year 2025 marked the first full year of grain trading for Qube and the benefits of that strategy.
The growth in that business underscores our ability to identify an opportunity to do the research and plan, put in place the appropriate commercial and risk parameters, act with its eligibility and execute the strategy for the benefit of our customers and shareholders. In the case of our Agri business it meant that bulk exports through fused grain terminals doubled in full year 2025 to around more than 3 million tons. Throughput across our upcountry grain facilities in New South Wales reached 750,000 tons, our trains were fully utilised, we lifted our container packing volumes, and the pass through benefits to the business and most importantly the Agri business made a significant contribution to earnings and a return on capital employed. We also undertook some further strategic investments in Agri-infrastructure during the year.
A small acquisition adjacent to our existing Narrabri facility and having proven the success of the model in New South Wales, we're now looking to selectively expand into other states. Our Agri flash grain business with the addition of a bulk handling facility at the Port of Albany in Western Australia, which we recently acquired last month in July along with establishing new container packing operations this year from existing sites within the logistics business in Brisbane, Melbourne, and Fremantle. Now turning to Slide 16, Moorebank IMEX Terminal, this gets a lot of attention disproportionate to the rest of the business. Operations at the IMEX Terminal are now cash flow and EBITDA positive. We expect that momentum will carry into the full year 2026.
As you can see from the chart on the right, the TEU run rate is stepping up and is on track to reach 1 million TEU target sometime between 2031 and 2034. The Moorebank Avenue realignment will be critical.
It was great to.
See that project commence late January this year. The Moorebank warehousing development continues to build out with additional number of new tenants commencing in full year 2025 and the big announcement that the Kmart DC will be operational at Moorebank in full year 2027. The map on the next slide shows the current tenant take up at Moorebank for your viewing. Now turning to ports and bulk on slide 18, again we saw good margin growth in this business. Profits up 10%. Margins increased by 0.6%, which is particularly pleasing considering the headwinds from industrial action, weather impacts, and some impacts from mine suspensions. Despite this, the business still able to generate growth and margin improvement. Volumes were generally mixed with growth in grains, steel products, and forestry products.
Qube's energy logistics activities also increased significantly with additional work from existing customers and new supply base and project related work won during the year in the bulk operations. The diversification of those operations together with disciplined cost controls and productivity gains and also with the contribution from the Colemans acquisition all helped more than offset the headwinds I mentioned earlier, and the business also secured several significant contracts that will commence in full year 2026, including contract wins late in the year such as logistics service for the new Iluka West Balranald project in New South Wales, the WA Oil decommissioning logistics work for Chevron, a new warehouse supply base facility for Rio Tinto at Karratha. Moving to slide 19, briefly looking at Patrick, I've already mentioned that Patrick's market share normalized back to 42% as expected.
In saying that, to achieve the same profits as the prior year was a very good outcome and slightly above our expectations that we had at the start of last year. Patrick delivered the result via improved productivity efficiencies, higher ancillary revenues, and a more favorable mix in volumes. Patrick also extended several customer contracts across the period. On top of that, management delivered a three year rollover of the enterprise agreement with the MUA during the year, which was a fantastic outcome. These productivity efficiencies and the margin improvement achievements gained in full year 2025 will contribute to growth of earnings in full year 2026. Moving to slide 20 associates. Apart from MITCo , all other associates track broadly in line with expectation, and you would have seen the announcement last week about the impairment of the MITCo asset.
We made no secret of the challenges relating to Moorebank Interstate Terminal and securing users of the terminals since it became operational. The construction of that facility by its sunset date was an obligation for Qube under the overall deed of development at Moorebank, and while we hope and believe it is a long-term asset of potential value, it is now impossible to know when any significant demand for use will come at this point in time, and on that basis we took the decision to impair the asset. I will now hand over to Mark to discuss some key financial information. Over to you, Mark.
Thanks Paul and thank you to everyone on today's call for listening in. As Paul has already highlighted, it has been yet another positive financial result for the Qube group for the FY 2025 financial year. I'll now take you through a few financial slides starting with slide 22. Qube underlying results Paul has already given a lot of color to our logistics and infrastructure and ports and bulk business units as well as Patrick's results. A few other points to note include the strong result in our operating division and Patrick contributed to an increase in group underlying EBITDA of 18.5% over the prior period. Pleasingly, Qube's EBITDA margin excluding the high revenue low margin grain trading business increased to 10.5% which is a full percentage point better than the prior period.
As we had guided to earlier in the year, this EBITDA improvement was partially offset by an increase in net finance costs as well as lower contribution from our associates. Net finance costs increased by AUD 22 million against the prior period due to higher average debt balances and base interest rates versus last year as well as no capitalization of interest on the MLP terminals which alone was a AUD 10 million period on period impact. The NPAT share from associates reduced by AUD 8 million which was mainly attributable to Qube's share of the losses from the MITCo joint venture which owns the Moorebank Interstate Terminal asset. I'll talk more to that in a minute. At the underlying NPATA line we delivered AUD 288 million which was an increase of 6.2% over FY 2024.
On the back of these results the Board has declared a final dividend of AUD 5.7 per share fully franked which will be payable on October 14th, 2025. This brings our full year dividend to AUD 9.8 per share which is a 7.1% increase over FY 2024. Before leaving this slide, I'll just make some short comments on the material non underlying adjustments that we announced to the market last Thursday. The more straightforward item was the significant profit on sale of the Minto property which transacted late in the first half. This transaction delivered circa AUD 201 million of gross proceeds and almost AUD 90 million of non underlying profit.
The second and more material item totaled some AUD 219 million and related to the full impairment of Qube's carrying value of a 65% investment in the MITCo joint venture of AUD 127 million as well as several other downward fair value adjustments and onerous contract provisions all relating to Qube's obligations with the interstate terminal at Moorebank. AUD 157 million of the AUD 219 million amount is non-cash and the balance represents costs Qube is forecasting to incur to fully complete Stage 1 of the Interstate Terminal post the completion of the realignment of Moorebank Avenue which is anticipated to be in late calendar year 2026. Most of the cash is forecast to be spent in the second half of FY 2027 and during FY 2028 in addition to the ASX announcement last week.
Further details for those specific items and other non-underlying adjustments are included in the appendix to this presentation as well as in the Review of Operations section within our annual report. Moving to slide 23, capital expenditure in FY 2025, Qube's net CapEx was AUD 561 million. This is broken down into the four major categories on this slide. The completion of the MIRRAT acquisition on the 1st of May combined with the Colemans acquisition in the first half meant Qube spent a total of AUD 453 million on M&A in FY 2025. I'll talk to both of these and a few other strategic asset purchases on the next slide. Qube spent AUD 151 million on organic growth related assets in the categories set out in the table below. The major spend was on properties, new bulk storage facilities in Queensland, Western Australia, and mobile assets to support new or expanded contracts in the period.
We also spent AUD 209 million of replacement CapEx, mostly on mobile fleet assets and materials handling equipment. This represents circa 88% of our FY 2025 underlying depreciation expense. Finally, we spent AUD 28 million on the two Moorebank rail terminals, placed relatively equally between the IMEX and the Interstate. During the year, Qube received proceeds of AUD 281 million from the divestment of assets, with a significant amount being for the Minto property which I mentioned earlier and some rail rolling stock assets in excess of our business requirements. Taking you now to slide 24, acquisitions. As mentioned on the previous slide, in FY 2025 Qube acquired the Colemans and MIRRAT businesses. Colemans business is a West Australian based business that focuses on the highly specialised security sensitive ammonia nitrate supply chain. It will be managed and reported within our bulk business unit.
The integration of this business has been completed and is performing in line with our expectations. We expect this business will meet Qube's revised return on capital hurdle in the medium term. The second and larger acquisition was the MIRRAT business based at Webb Dock West in Melbourne. MIRRAT is the only dedicated roll on roll off terminal servicing the Victorian market with a long term lease over key port infrastructure. The business integration is also progressing well and like Colemans we expect to meet Qube's return on capital targets in the medium term. One item to note for analysts modeling Qube is that these acquisitions will add approximately AUD 13 million of incremental non-cash amortization of intangibles to FY 2026 P&L and into future years. This is associated with intangibles such as customer contracts and port concessions.
In addition to the two acquisitions I've mentioned, we wanted to highlight that Qube also continues to acquire other strategic assets such as properties with on-site infrastructure. In addition to the Karratha and Narrabri properties mentioned on this slide, we also invested in bulk storage facilities in Rockingham, Western Australia, Newcastle, New South Wales, and on Fisherman Island in Queensland. Over the past three years, Qube has acquired a number of other strategic properties with existing built-out infrastructure close to key ports or Agri accumulation and logistics hubs and built a number of other bulk storage facilities to service growing customer demand for these facilities. We expect further investment in that asset category in FY 2026. Finally, as Paul mentioned briefly when talking about Qube grain trading, in early July 2025, Qube acquired the ABH business for AUD 25 million.
This business owns bulk export infrastructure and operations on a site leased from the Southern Ports Authority at the Port of Albany in Western Australia and currently is mostly focused on wood chip exports. Qube intends to upgrade the facilities to handle multiple commodities including mineral sands, spodumene, and grain and significantly increase the volume through this facility. This business will report through our bulk business unit. Taking you now to slide 25, cash flows during FY 2025, Qube's net debt increased by circa AUD 403 million, with the key cash flow items detailed on this bridge. Our cash conversion excluding grain trading working capital, which I'll talk to shortly, was 87%, which overall was somewhat disappointing and an area we continue to focus on. Our grain trading business has required a significant investment in working capital as we build this business up during FY 2025.
Working capital for this part of the business grew AUD 66 million in the period to be over AUD 146 million at the end of the year. You will remember though that at December 24 our working capital balance was over AUD 210 million, so some of that has unwound in the second half. Since July 1st this year, Qube has received more than AUD 122 million in bulk related receipts and at this point we expect first half working capital levels will likely be similar to those we saw in FY 2025. Our FY 2025 cash flows also included AUD 545 million of net CapEx that I spoke to on the previous slide, as well as over AUD 170 million in distributions and shareholder loan repayments received from our associates, mainly Patrick. The Patrick shareholder loan has now been fully repaid.
Another material cash outflow on this bridge is the AUD 75 million Qube was required to pay Martinus as part of a Security of Payment Act claim they brought against Qube, which in the second half was ultimately determined in their favor. This outcome does not affect Qube's ultimate position, which will be dealt with through arbitration. An arbitration process has now commenced covering the entirety of the project and Qube's assessment is that its contractual position will prevail. It is likely that the arbitration process itself will take another 12-1 8 months to conclude. I would refer you to our contingencies note 29 of our financial statements for further information on this particular item. Finally, I can take you now to slide 26 balance sheet and funding. Qube had an incredibly busy FY 2025 in terms of capital management.
As I mentioned back in February, Qube had obtained and made public investment grade BBB equivalent credit ratings from both Fitch Ratings and S&P. On the back of the credit rating process, we tapped into the Australian medium-term note market for our inaugural issuance in early December 2024 and successfully issued AUD 600 million of long tenured senior unsecured notes. We continued this momentum in the second half and completed a full refinancing of our existing bank debt in June 2025. This AUD 2 billion refi delivered a small upsize in available facilities. However, more importantly we improved our pricing, increased our tenure, and made some favorable changes to our debt terms. Given the above, we closed FY 2025 with our average debt maturity increasing from 3.2 years to 5 years. Qube had over AUD 1 billion of liquidity at the end of the period and now have no refinancing requirements until FY 2028.
Qube's gearing ratio increased to 33%, which is at the midpoint of the Board's current approved range. Overall, we retain significant headroom against our bank covenant. That's all from me, so I'll now hand you back to Paul.
Thanks Mark. Now to summarise and provide the outlook. Slide 28, to summarise this scorecard, another record year for Qube. Revenue improved significantly, margins improved again, return on capital improved and found its way to a new target of 12%+ . Our earnings per share improved and shareholders saw further dividend growth. Slide 29, Qube strategy, this slide notes the past five years' performance that our strategy continues to deliver healthy growth. Not every year will deliver double-digit growth rates. However, we remain confident that our strategy and the opportunities that lay ahead will continue to deliver healthy growth rates well into the future ahead. Now turning to Slide 30, outlook across Qube's key markets, the outlook across our key markets for next year is generally favorable.
In containers, market growth is expected to be in line with GDP and the continued ramp up of our New Zealand operations will help growth. Patrick is expected to return to volume growth and margin growth. The outlook for Agri and our grain exports is very positive with a strong harvest forecast and with the help of our continued grain trading strategy to build out further growth. In automotive, we expect to see steady automotive import volumes, but an ongoing reduction in storage-related activities at the AAT facilities is forecast to have some impact in full year 2026 and we'll have the full benefit of the contribution of the acquisition from MIRRAT. So a bit of a mixed bag on outlook on cars and vehicle revenue for next year.
In forestry, we expect broadly flat volumes in New Zealand with rate adjustments offsetting wage and cost increases and weaker wood chip volumes in Australia offset by higher log export volumes. In our resources business, it will be impacted slightly by some custom impacts and mine suspensions from full year 2025. Although this business may go backwards slightly next year in profits, it will still contribute meaningfully to the group and there's an outlook to improve in full year 2027. In energy, the positive outlook for further growth continues, assisted by new contracts and additional work commencing in full year 2026 and our general stevedoring business will recover from the impact of industrial action of last year.
Slide 31, underlining earnings outlook, so to conclude, we currently expect to deliver solid NPATA and EPS growth in full year 2026 with strong earnings growth in the logistics and infrastructure business unit, modest earnings growth in the ports and bulk business unit, and return to good earnings growth from Patrick. Net interest cost is expected to increase by between AUD 15 million- AUD 20 million. CapEx is currently projected to be around AUD 600 million- AUD 650 million, although further asset sales are expected to partially offset this figure. I would now be pleased to take your questions as I hand back to the moderator. Thank you everyone for joining the call this morning and look forward to your questions. Thank you.
Thank you. We will now begin the question and answer session. Please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. Our first question today will come from Darcy White with Jarden. Please go ahead.
Hi Paul, hi Mark. Appreciate the opportunity to ask a question today. Just a couple quick ones from me. Can I ask if the CapEx guidance that you've provided includes M&A, and second, for the solid EBITDA growth outlook that you provided in the pack, if we assume that modest is 6% in FY 2025, should we then assume that solid is going to be greater than 6% and therefore closer to 10% or.
A bit higher, please?
Yeah, hi there. Yeah, the CapEx that we've guided to does include some M&A. The number could be, you know, much lower if not. We do little M&A. Yeah, it's sort of based on our what our sort of where we expect it to be from an EBITDA perspective. We're not going to really give any more EBITDA perspective. We're not going to give any more guidance than what we've got there. In terms of giving you specific.
Quantitative guidance, unfortunately.
N o problem.
Okay, thank you. Just one last question, if I may. Could you also provide some commentary, please? In the net interest line, as it's expected to be higher on FY 2026, what's happened to proceeds from Minto? Would you mind just refreshing our understanding to the sensitivity to rate changes, please?
Yeah, so it's obviously our gross or net debt, as you can see in the cash flow slide, is much higher than it was at the beginning of FY 2025. We've obviously been carrying that higher level through, and you've got all the asset proceeds offset by high CapEx, the large acquisitions, AUD 450 million for the two acquisitions, and all of the other items. We do carry higher debt into FY 2026, and that's a key driver for it all, obviously. The other part is, you know, interest rates are coming down, and that's a bonus. It's really more linked to the higher debt overall. As I said in my commentary, through our bank debt refinancing, we did receive some margin improvements there. That's all factored in, and that's really effectively driving the increase overall from the interest expense line.
Okay, thank you, that's helpful.
Appreciate it.
Yeah, I mean, we'd love to have more RBA rate cuts. That would be nice too if they're listening.
The next question will come from Cameron McDonald with E&P. Please go ahead.
Good morning. A couple of questions from me if I can. Firstly, in terms of Patrick and the repayment of the shareholder loans, you've now got a senior debt balance there of AUD 1.4 billion versus an enterprise value of AUD 6.6 billion, AUD 6.7 billion underpinned by a transaction. What's the potential? I mean, that looks ridiculously under-geared as an infrastructure asset. What's the potential and the discussions between you and the new co-shareholders of Patrick to think about capital management of Patrick's vehicle, please.
Hi Cameron, it's Mark. Patrick has been, you know, I guess like you said for an infrastructure asset it's relatively conservatively geared, and that's something that both ourselves and Brookfield have agreed on over a number of years, and we don't see that changing. We're not really looking to gear it up any higher than what it has been, which is sort of sub 4, and that's just the decision that the shareholders have made jointly as being the appropriate level that fits both shareholders rather than just the Patrick business.
You'll just see that come through as much higher profit numbers as an associate profit number.
Yeah, we obviously, these distributions coming through from Patrick have been a combination of dividends, cash shareholder loan repayments, and the like.
So obviously.
Interest, sorry, on the loans. Those loans have now been fully repaid. That's probably another reason why our interest expense goes up, because it's not being netted off by the interest coming through from Patrick loans. We don't expect distributions from Patrick will continue to be a nice line item in our cash flow regardless of how their gearing is.
Thank you. In terms of the BHP Olympic Dam contract that Kalari lost more recently, I understand that those assets have been redeployed. Has that been redeployed into the new contracts that you've called out, or are there additional contracts that we should be aware of?
Yeah, they are getting redeployed into some of the contracts that I called out. We are still exiting that contract. Some of them actually are still there at this point in time. The plan is to move those assets and some resources into existing work and new work, a combination of both. The beauty of our diversification, I guess, in our growth pipeline.
Okay. Finally, just on the CapEx. The net number of AUD 480 million -AUD 510 million after asset sales, I'm assuming that includes the AUD 62 million you called out on the interstate obligations at Moorebank, and then.
Yeah, it doesn't, Cameron, that AUD 62 million cash for interstate. It'll be only a couple of million this financial year because it's really, we can't really start the heavy work on that until Moorebank Avenue realignment's complete, which is sort of scheduled for the end of 2026 calendar year. That'll be into FY 2027. In my commentary, I sort of spoke most of that CapEx will be spent in the second half of FY 2027 and throughout FY 2028.
Okay, is there.
Yeah.
You've called out one property in WA. My understanding is that you're also looking at a second property. Is that still being examined or has that fallen through?
You're talking to.
In regards to acquisitions of property or.
Yeah, that's correct.
Yeah. No, as I said in that acquisition slide, we bought a second property at Narrabri. You'll remember, year before last, I think it was that we bought another property there, and the one up in Karratha is a second property as well, adjacent to one that we bought a year or so ago as well. We continue to look at opportunities to acquire properties that, as I said, are adjacent to key ports or linked to the Agri-infrastructure hubs, be it in accumulation areas that have got really good rail access. We'll continue to look at that, but we're not really guiding to that line at the moment. Anything would be properly included in that overall CapEx guidance.
Okay, great. Thank you.
The next question will come from Samantha Edie with Morgan Stanley.
Please go ahead.
Good morning. Thank you for the presentation today. I've just got a couple of questions. The first question's on MIRRAT. Could you provide some more details on the earnings contribution from MIRRAT in FY 2025 and I guess what we can also expect heading into FY 2026, and then also is that asset performing in line with expectations so far?
Yeah.
So far the MIRRAT acquisition is broadly in line. It's a little bit off that due to, as I mentioned before on the call, around, you know, there's been probably a fair reduction in storage and ancillary revenues at this point in time. I mean, we're extremely pleased with the acquisition and what we can do in Melbourne between Webb Dock West and Appleton Dock with those two facilities for AAT. We're just working through that synergy value over the course of the next 12 months. The earnings guidance is we don't usually give the exact amount, but from a return on capital you can sort of work it out. That's, and it'll be around.
I can add a bit more color to that. In our annual report, in the business accommodation note, page 100, we actually have to state what the earnings would have been if it was on a full year basis. We only had it in for two months of FY 2025, but you'll see in that note that if we'd had it at the beginning of July 2024, we would have had circa AUD 66 million of revenue and AUD 21.6 million of EBITDA, effectively. You'll expect that FY 2026 will be in that ballpark.
Okay, thank you, that's really helpful. On the asset sales that you've got for FY 2026, you've got AUD 120 million-AUD 140 million. That includes the rolling stock of the AUD 49 million on slide 25, I assume. Can you just share what else is in that bucket and if there's any color on the tax payable.
Sorry. The AUD 48.6 million that's included on slide 25, correct, that's already been received. There are some other asset sales that we're looking at as well. Sorry, what was your second part of that?
Yeah, can you just share what's in that bucket and then the color on the tax payable?
I can't really. We sort of got some negotiations underway for certain things, so probably not. We'll announce that at the appropriate time. There'll be, yeah, obviously subject to tax. Minto, for example, obviously will have, there'll be some capital gains tax on all that, but we, you know, that we're yet to work through all of that, so I can't really give some, you know, honest guidance on that at this point.
Okay. Just one last quick question. Just on the oil and gas decommissioning work in Karratha, are you seeing a pipeline of work there? Is that building? Can you give us some color on what kinds of activities the teams are doing up there?
Yeah, it's healthy. The WA Oil contract that we've won from Chevron, you know, with the logistics task coming out of Barrow , is going to keep us fairly busy for this year at least and years to come. There are other opportunities that the guys are working through, and we're in a really good position with our facilities and our know-how to win that work.
Okay, thank you.
Again.
If you have a question, please press star then one. Our next question will come from Rob Koh with MS. Please go ahead.
Thank you for indulging Morgan Stanley with two rounds of questions. We weren't trying to be sneaky there, just a question on the grain trading, which is just an amazing amount of revenue on the trading side. More importantly on the logistics side, if we strip out the related party revenue, it's kind of gone from AUD 200 million to AUD 150 million. Is there like a substitution of customer or loss of customer there?
If you could just tell us the.
Right way to think about that, please.
Yeah, I'm not sure those numbers that you're referring to, but yeah, we did AUD 900 million or circa AUD 900 million of grain trading revenue, which is selling the grain. As we sort of have been mentioning ever since we started this, it's low margin because we're all about trying to feed our infrastructure. You'll see in what we presented that the results of that was that our grain trading business contributed AUD 117 million of work services provided to them through our Qube Agri business, which is the upcountry and our rail and the two port terminals. There is an element of, you know, maybe substitution because you remember a couple of years ago we did over 3 million of grain through our export terminals as well. Those services are being provided to an internal part of the business. We charge. It's all arm's length charging. That's happening and it's.
I don't know where the numbers that you came from, the AUD 150 million or AUD 200 million that you mentioned.
Yeah, that's slide 35. Looking at the agriculture revenues.
Oh, okay. Through the revenue splits.
Yeah, yeah. Oh yeah.
Anyway, I'm multicolored if you want. Yeah, we can leap back to that.
It's growth.
Sorry, there's growth net about 20%.
That excludes the grain trading, so it normalizes it.
There is growth.
I'm just trying to work out what number you're going.
Okay, yeah, I totally.
accept what you're saying about the grain trading margin. That's stripped out of this result in slide 35. If your FY 2025 revenue is AUD 268 million and then I strip out the intercompany revenue, that's more like AUD 150 million, down from say AUD 200 million in FY 2024 on a same basis.
Does that have been revenue? 24?
Yeah, there's intercompany, but it's intercompany yet.
Overall, the activity is more through our assets. If you just look at the 20% uplift on that, there's more activity coming through our assets, but more of that's coming through our own grain trading desk than would have been previously. We are still doing more activity. Our assets are getting more utilized, our facilities are getting more utilized with that 20% uplift in revenue, if that is easier to explain it.
Yeah, that was the original thesis, and if you say it'll happen, we expect it to happen as per track record. That's all good. I just wanted to understand that nuance, wasn't having a go.
No, no.
My next, Rob. Yeah.
If I can just sneak in one more question, maybe a bit left field. If you could just comment on any impact you're seeing from the Safeguard Mechanism. I only ask because one of your competitors actually did an impairment in part because they've used an ACCU forward curve in their testing and they don't believe they can pass on carbon costs to their customers. If you have any color at.
All you could share.
No, we're not seeing any impact. We're not sort of captured under the Safeguard Mechanism. None of our business units reach that limit at this point in time. It is something we're watching. Yeah.
Okay, thank you very much.
The next question will come from Ian Munro with Ord
Minnett, please. Go ahead.
Oh, good morning. Just looking at the stepping back from Olympic Dam, just trying to understand are there any kind of one-off costs associated with that project cessation?
They're all in our guidance going forward. As I said, the bulk business will be impacted by that slightly. In saying that, it is a complex supply chain. We kept our disciplines, we had the opportunity maybe to keep that work but we felt that we could use the assets somewhere else. We're happy to do that. To answer your question, Ian, there is an impact into FY 2026 which we've guided to.
Then just on the resources outlook, if we sort of normalize for that contract, we still sort of amber red in terms of existing resource customer volumes and outlook.
Yeah, that's because of short-term impacts.
We've got other contracts coming on board like Balranald or Iluka, which probably we won't see until the second half of the year, and some other business wins which will benefit us. The outlook for 2027 will look better and it will more than replenish the Olympic Dam impact for our bulk business.
Very good. Just one more follow-up perhaps on the CapEx guidance. Are you able to perhaps give us any hints as to, within the growth portion of the guidance, how much is falling into the project bucket and how much, roughly, in the M&A bucket that might have a more immediate earnings uplift?
Yeah, Ian, it's probably going to be very similar to the sort of the growth and maintenance CapEx profile that we had in FY 2025. If you go to those slides, you could probably take them as quite indicative of what we'll spend in those buckets, and then with the balance, you know, hopefully deployed into acquisition opportunities.
Very good. Thanks, Mark. Thanks, Paul.
Thanks.
This will conclude our question and answer session. I would now like to hand the call back over to Mr. Digney for any closing remarks.
Please go ahead, sir.
Thanks everyone for joining the call and for your questions. Look forward to catching up with some of you over the coming weeks, and thank you for your time. Thank you.
This concludes our conference call for today. Thank you for your participation. You may now disconnect.