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KiwiRail’s FY25 results reflect a year in which the State-Owned Enterprise delivered on its operating surplus target, grew freight volumes, improved freight customer satisfaction, retained operating margin and banked savings from the first full year of its change programme, despite economic headwinds.
The services business delivered an operating surplus of $111m, up from $105.6m in FY24 and ahead of the Statement of Corporate Intent target of $110m.
Leadership perspectives
Rob Jager, acting chair during FY25, says that behind the headline numbers was a year of preparation for growth.
“The company brought $1.1 billion worth of new assets into service, moved the Interislander to a two-ship fleet as part of preparation for new ferries in 2029, implemented a revised strategy and embedded our customers’ success as our reason for coming to work every day.
“We have achieved all this while maintaining a relentless focus on improving our safety performance and pursuing new commercial opportunities.”
Rob says KiwiRail continues to make progress on safety performance, with an 18 per cent fall in total recordable injuries, a 19 per cent reduction in high-potential near miss events, and a seven per cent reduction in the total recordable injury frequency rate.
“Our people are the heart of our business, and nothing is more important than their safety and wellbeing. There is much more work to do, but we remain committed to ensuring everyone goes home safely every day.”
Chief executive Peter Reidy says the results reflect the organisation’s resilience in a challenging environment.
“The first half of FY25 saw revenue challenges, including the closure of the WPI plant and Oji Mill, and reduced coal transport due to the Tawhai Tunnel closure. But the second half saw better results on the back of improved service reliability, the re-opening of Tawhai Tunnel, improved export volumes and the return of some customers to rail.
“At the end of the year, freight volumes were up 2.7 per cent. There was also a 45-point improvement in the freight customer net promoter score.”
Business unit performance
- Interislander: Cancelled sailings reduced 40 per cent (excluding weather), commercial vehicle market share grew, net promoter score up 21 points.
- Scenic: Revenue up 28 per cent despite slower tourism recovery.
- Property: Delivered a solid performance.
- Infrastructure: Delivered 37.5km of track upgrades, 17 turnouts, 15 level crossings, three active crossings, and 10km of signals cable replacement under the Rail Network Investment Programme.
FY25 also saw completion of capital projects worth about $1.1 billion, including the Hillside and Waltham depots (both under budget), the Wiri to Quay Park “third main” line, and electrification between Papakura and Pukekohe.
Peter says FY25 has set KiwiRail up well for FY26 and beyond.
“We will continue to strive for improved on-time safe performance and delivery that our customers seek.”
