Key points
- Record financial results with NPAT up 831%
- Fully franked dividend of $0.83 per share
- Significant free cash flow and improved balance sheet
- POSCO transaction expected to reduce net debt to $3.2B
Full summary
Mineral Resources Ltd (ASX: MIN) announced its full-year financial results for FY26, showcasing the strongest financial performance in the company's 20-year history. The company reported a Net Profit After Tax (NPAT) of $1.2 billion, up 831% year-on-year, and an Underlying NPAT of $822 million. Record revenue of $6.5 billion and Underlying EBITDA of $2.6 billion were driven by growth in Mining Services, the ramp-up of Onslow Iron, and improved lithium performance. The company generated significant free cash flow of $849 million and doubled its liquidity to $2.4 billion. Net debt reduced by $1.1 billion to $4.3 billion, with the net-debt-to-Underlying EBITDA ratio falling to 1.7x. The company also declared a fully franked full-year dividend of $0.83 per share, representing a 20% payout of Underlying NPAT. Subject to conditions precedent, completion of the POSCO transaction is expected to reduce net debt to $3.2 billion (~1.2x ND/Underlying EBITDA).
Guidance
FY27 Mining Services volumes growth of 9% to 14%, with Onslow Iron achieving nameplate capacity of 35Mtpa
Outlook
MinRes enters FY27 with a stronger balance sheet and forecast growing volumes across every operating division, supported by long-term contracted revenue and infrastructure-like, recurring earnings.