AZJ Revisited: Falling off the rails

I thought it would be good to revisit a stock that we have talked about and has had its latest financials updated within Stockopedia.

Aurizon Holdings (ASX:AZJ) operates one of the largest rail networks in Australia and transports a comprehensive range of commodities, including mining, agricultural, industrial, and retail products for a diverse range of customers across Australia. As mentioned, this has been covered at depth in a previous commentary of the business. For those that need to familiarise themselves further with AZJ you can refer to my previous article written on 23rd August 2023 .
AZJ over recent years has increased debt levels and acquired One Rail in FY22, invested heavily in new wagons, upgraded terminal amp; port services infrastructure, and purchased new locomotives in and attempt to diversify revenue, earnings, and profits away from the regulated returns of their Central Queensland Coal Network (CQCN) asset. As in, FY23 CQCN generated circa 30% of AZJ’s revenue amp; earnings and nearly 70% of profits and a quick look at their FY24 segment breakdown it doesn’t look like much has changed.