ASX Stocks Benefiting From Falling Oil Prices

Lower oil prices are giving a boost to the following ASX listed companies where fuel cost reductions will directly improve profitability and help them gain cost advantages which is bound to be reflected in their stock prices.

Qantas Airways Limited (ASX: QAN)

reported a strong FY25 result due to strong demand from both domestic and international travel along with improving operational reliability, record loyalty engagement and continued fleet renewal.

Revenue increased to $23.82 billion and Underlying Profit Before Tax rose to $2.39 billion from $2.08 billion last year.

Operating cash flow was $4.3 billion while statutory profit after tax was $1.60 billion and falling oil prices may create further benefits because fuel is one of its biggest expenses.

Interest rate cut may also help as lower borrowing costs reduce financing expenses for aircraft purchases and also support stronger travel demand as Qantas enters FY26 in a position that supports stable margins and earnings growth.

Aurizon Holdings Limited (ASX: AZJ)

delivered a solid FY25 result supported by improving freight volumes, better operational efficiency and progress across its renewable freight and long-term infrastructure strategy.
A major development during the year was the signing of a new multi-year agreement with Glencore which improves volume certainty in the coal segment.

Revenue for FY25 increased to $3.95 billion which grew by 3% from last year supported by growth in Coal and containerised freight.

Aurizon is well positioned to benefit from lower global oil prices which will reduce transport costs across its locomotive fleet and the expected rate cut would help reduce borrowing costs which is helpful due to its capital-intensive business model.

Qube Holdings Limited (ASX: QUB)

had a great FY25 with record revenue growth supported by strong logistics demand along with strategic acquisitions that are expected to support long-term scaling in bulk handling and automotive logistics.

Underlying revenue for FY25 rose to $4.46 billion which grew by 27.3% from the previous year while underlying EBITDA increased to $616.2 million which represents a 15.4% rise.

Qube is well positioned to benefit from decline in fuel prices since logistics and transport costs are closely linked to diesel, marine fuel and lower input costs will support stronger margins across rail, trucking and port operations.

A fall in interest rates would also reduce financing pressure on working capital and long-duration infrastructure projects which is relevant as the company expands capital expenditure plans.

Transurban Group (ASX: TCL)

had a stable September quarter update with traffic volumes growing across all key regions.

Average Daily Traffic (ADT)

increased 2.7% across the network reaching 2.6 million trips per day with gains recorded in Sydney, Melbourne, Brisbane and North America.

Transurban had maintained its FY26 distribution guidance at 69 cents per security which represents approximately 6% growth from FY25 distributions and the company confirmed that most assets continued to generate reliable cash flow backed by long-term agreements.

Transurban will benefit from falling oil prices because lower fuel costs will support higher road usage which contributes to stronger tolling revenue and a rate cut would also be helpful because lower borrowing costs would reduce interest expenses.

(Source: Company Reports)