KiwiRail posts $162 million operating surplus despite large tax deficit
Wednesday 30 September 2026 · 2 outlets · 2 reports · updated In this story Winston Peters, KiwiRail
KiwiRail recorded a $162 million operating surplus and an 11% rise in freight revenue for the year ending June 30. However, the company reported a post-tax deficit of over $1.4 billion, largely due to an impairment charge related to the Auckland City Rail Link.
Key facts
5 facts
- KiwiRail operating surplus: $162 million
- Financial year end: 30 June 2026
- Rail freight revenue: $504.4 million
- City Rail Link impairment charge: $1.19 billion
- Annual economic value contribution: $3.3 billion
The full story
1 min read · 2 outlets
KiwiRail recorded an operating surplus of $162 million for the financial year ending 30 June 2026. This underlying result was slightly ahead of forecasts, even though the company posted a full-year deficit after tax of just over $1.4 billion.
The significant deficit was largely driven by a $1.19 billion non-cash impairment charge related to Auckland City Rail Link assets. Operating revenues reached just over $1.1 billion, representing a 5 percent increase from the previous year.
Rail freight revenue grew by 11 percent to $504.4 million, while total freight volumes rose by 3 per cent to 3.5 billion net tonne kilometres. Rail services currently move approximately one quarter of New Zealand's exports.
Rail Minister Winston Peters welcomed the results and congratulated the workforce. Board chair Suzanne Tindal described the results as encouraging, noting they reflect decisions made to improve performance.
Where reports differ
- One report focuses on the $162 million operating surplus, while the other highlights a $1.4 billion deficit after tax caused by impairment charges
Compiled from reports by Stuff and RNZ.