KiwiRail has welcomed some positive results in the first six months of the 2026 financial year, nearly tripling its earnings.
The operator recorded an operating surplus of $73.4 million in H1 FY26 – up $47.6 million on the same period a year ago.
Board Chair Suzanne Tindal said KiwiRail is on track against 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 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.”
The operator also carried more freight in H1 FY26, with total volumes up 7 per cent to 1.8 billion net tonne kilometres.
This was in response to a lift in domestic demand and bulk cargo volumes returning to normal.
Meanwhile KiwiRail has also been delivering 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.
Preparing Auckland’s metro network for the new City Rail Link opening later this year has been a major focus of the investment.
Looking ahead to the rest of FY 2026, Tindal said KiwiRail’s focus will be 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.”
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