KiwiRail half-year earnings jump as surplus hits $73.4m

KiwiRail half-year earnings climbed sharply in the first six months of the 2026 financial year, with the operator reporting a result that was close to triple the prior year’s first-half outcome, as reported by Rail Express.

KiwiRail half-year earnings and the H1 FY26 operating surplus

In H1 FY26, KiwiRail recorded an operating surplus of $73.4 million, up $47.6 million on the same period a year earlier, according to a KiwiRail statement. Board Chair Suzanne Tindal said KiwiRail is tracking toward its full-year operating surplus target of $160 million.

Don’t miss…Digital train traffic optimization system to manage disruption

“This reflects improved operating performance across our commercial businesses and early progress from initiatives to strengthen productivity and reduce our cost base,” she said. “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 up 7% to 1.8 billion net tonne kilometres

Meanwhile, freight volumes also rose in the half, with total volumes up 7 per cent to 1.8 billion net tonne kilometres. KiwiRail said the lift reflected stronger domestic demand and bulk cargo volumes returning to normal.

Modernising the rail network and preparing for the City Rail Link

In addition, KiwiRail said it is continuing to deliver on the Government’s investment program to modernise the rail network, with more than $9 billion invested to upgrade rolling stock, track, signalling and infrastructure assets, as outlined in its Half-Year Report 2026. Also, a major focus has been preparing Auckland’s metro network for the City Rail Link opening later this year.

Separately, looking ahead to the rest of FY 2026, Tindal said KiwiRail’s priorities include 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.”

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: