This Content Is Only For Subscribers
KiwiRail has reported a $73.4 million operating surplus for the first six months of FY26, up from $25.8 million in the same period last year.
Board chair Suzanne Tindal and chief executive Peter Reidy say the result reflects improved operating performance and continued delivery of the Government’s rail investment programme.
“Taken together the results represent a period of quiet, disciplined execution that strengthens the business day by day,” Suzanne says.
The company remains on track to meet its full-year operating surplus target of $160 million.
“This reflects improved operating performance across our commercial businesses and early progress from initiatives to strengthen productivity and reduce our cost base,” she says.
“While we have made gains in the first half, we do see a continuation of a highly competitive freight market where there is increasing financial pressure on sector participants.”
Freight volumes rose 7 per cent to 1.8 billion net tonne kilometres, reflecting a normalisation of bulk volumes and a modest lift in domestic demand.
Peter says safety remains KiwiRail’s top priority.
“We have recorded sustained improvements in key safety indicators, reflecting our long-term focus on leadership, coaching and critical risk management.
“While progress is encouraging, we acknowledge there is more to do and remain committed to ensuring everyone goes home safely every day.”
The half year also saw continued delivery of the Government’s multi-year investment programme to restore and modernise the rail network. More than $9 billion has been invested in track, signalling, infrastructure and rolling stock upgrades, with $601 million invested during the half year.
Upgrades to the Auckland metro network ahead of the City Rail Link opening later this year have been a key focus, as part of the Rail Network Rebuild programme.
Interislander has operated with a two-ship fleet since the retirement of Aratere in August to support the Government’s Ferry Replacement Project. While passenger numbers were lower, commercial freight volumes remained steady, supported by strengthened road bridging capability across Cook Strait.
Suzanne says KiwiRail remains focused on improving customer experience, service reliability and productivity.
“We are well-positioned to handle higher demand through our MetroPort product on the Auckland–Tauranga corridor. The reset of this product with our partner, the Port of Tauranga, has been highly successful and reinforces our role in supporting more efficient supply chains.
“As we move through the remainder of FY26, our focus remains on safe and reliable delivery, deepening customer value and maintaining tight financial discipline.
“These choices are building momentum and resilience, and they are essential to KiwiRail’s journey toward a more financially sustainable and enduring future.”
