Highlights

• Net profit after tax fell 63.4% to $161.0m, while underlying EBITDA declined 32.8% to $514.3m in FY2026.

• Saleable coal production rose 7.6% to 11,518kt and sales climbed 11.8% to 11,789kt, both above the guidance range.

• A fully franked final dividend of 30.0 cents per share lifted the full-year payout to 40 cents.

• Total coal resources grew to 2,960 million tonnes from 2,547 million, driven by increases at Bengalla and New Acland.

New Hope Corporation Limited (ASX:NHC) mined and sold more coal than it said it would in FY2026, yet earnings moved the other way as the cost of growing two mines weighed on the result. Net profit after tax dropped 63.4% to $161.0m from $439.4m for the year ended 31 July 2026. Shares were trading at A$6.10 on 23 October 2026, up 2.52%.

More Coal Out of the Ground, Less Profit Out of the Year

Saleable production reached 11,518kt, up 7.6%, and coal sales rose 11.8% to 11,789kt. Both exceeded the top of the 10.2Mt to 11.5Mt guidance range. Underlying EBITDA, however, fell 32.8% to $514.3m, and revenue slipped 0.5% to $1,766.5m.

The company pointed to higher prime overburden movement and extra depreciation on equipment bought for the Bengalla Growth Project and the New Acland ramp-up. Group FOB cash costs rose 7.9% to A$88.9 per tonne, with pit re-sequencing at Bengalla after wet weather a key driver. The average realised price, before hedging, eased 8.8% to $143.2 per tonne.

Operating cash flow of $564.1m was close to last year's level, and available cash stood at $778.5m at 31 July 2026.

Two Mines, Two Different Stages

At Bengalla, where New Hope holds 80%, saleable production grew 4.1% to 8,186kt and the mine returned to its 13.4Mtpa run rate on a 100% basis in the second half. Sustaining capital there dropped 52.7% to A$84.0m.

New Acland produced 3,332kt, up 17.3%, and sold 3,556kt, up 37.0%, as Stage 3 ramp-up continued. The company is targeting 5Mtpa at the mine. Work to reach the Manning Vale West pit is progressing, with access scheduled for the final quarter of calendar 2026. The Queensland Bulk Handling terminal exported 5,779kt, up 12.1%.

A Larger Resource Base and a Reworked Balance Sheet

Updated estimates as at 31 May 2026 lifted total coal resources to 2,960 million tonnes from 2,547 million. Bengalla resources rose by 262 million tonnes, including an increase in the underground estimate to 100 million tonnes and 238 million tonnes of open cut resource within its exploration licences. New Acland added 151 million tonnes after new drilling and an updated geological model. Total recoverable reserves edged up to 844 million tonnes from 818 million. The company said further mine planning and economic analysis are needed before any Bengalla extension can move into reserves.

On funding, New Hope issued $300m of senior unsecured convertible notes due 2032, carrying a 2.625% fixed coupon, and repurchased $293.3m principal of its 2029 notes to reduce near-term refinancing risk. It also lifted its stake in Malabar Resources by 3.00 percentage points to 25.97%.

The board declared a fully franked final dividend of 30.0 cents per share, scheduled for payment on 15 October 2026, after a 10.0 cent interim. That makes 40 cents for the year.

What the Company Has Flagged Ahead

The results did not include formal FY2027 guidance. Management said it expects thermal coal prices to be well supported over the medium to long term, and that capital spending should settle at more sustainable levels as the New Acland ramp-up matures. Between $65m and $75m of capex is expected to support growth at that mine.

Dated milestones include the Manning Vale West access in the final quarter of calendar 2026, the first-quarter FY2027 quarterly report and investor call on 16 November 2026, and the annual general meeting on 19 November 2026.