Key Highlights

  • FY26 Revenue declined 7% to A$5.4 billion, while underlying NPAT fell 29% to A$227 million.
  • Managed ROM production increased 3% to 40.3 million tonnes, while unit coal costs declined 5% to A$132/t.
  • FY27 guidance includes 38.0–41.0Mt of managed ROM production and unit costs of A$132–147/t.

Whitehaven Coal (ASX:WHC) released mixed FY26 result, with production and cost metrics improving but lower coal prices and currency movements weighing on earnings. Revenue declined 7% to A$5.4 billion, while underlying NPAT fell 29% to A$227 million from A$319 million in FY25.

Underlying EBITDA decreased 8% to A$1.25 billion, although managed ROM production rose 3% to 40.3 million tonnes and reached the top end of the company's FY26 guidance. Managed sales of produced coal increased 8% to 32.7Mt, indicating higher volumes partly offset the weaker pricing environment.

Production growth was accompanied by lower unit costs

Whitehaven's operational performance provided some counterbalance to the decline in earnings. Group unit coal costs, excluding royalties, fell 5% to A$132 per tonne from A$139/t in FY25. The reduction came as the company focused on productivity, operating efficiency and cost management across its Queensland and New South Wales operations.

Queensland revenue fell 18% to A$2.85 billion, while underlying EBITDA declined 22% to A$677 million. The average achieved price decreased 1% to A$229/t. In New South Wales, revenue increased 8% to A$2.41 billion and underlying EBITDA rose 11% to A$596 million, although the average achieved price dropped 8% to A$177/t.

At the group level, the average achieved coal price was A$202/t. The company said the Earnings outcome reflected cyclical price weakness and the effect of a stronger Australian dollar.

Statutory profit also declined materially

Statutory NPAT was A$385 million, down 41% from A$649 million in FY25. The statutory result included A$158 million of adjustments to net profit, compared with A$330 million a year earlier. These adjustments were primarily associated with gains from the remeasurement of the contingent payment to BMA and foreign exchange movements on net Debt and deferred and contingent considerations.

Cash generated from operations also declined, falling 16% to A$1.06 billion. Net debt increased to A$1.33 billion at 30 June 2026 from A$634 million a year earlier, reflecting the company's acquisition-related payment obligations and broader capital structure.

Dividend and capital returns

Whitehaven declared a fully franked final Dividend of 6 cents per share, taking the FY26 full-year dividend to 10 cents per share. The final payment, totalling approximately A$47 million, is scheduled for 15 September 2026.

The company also intends to spend approximately A$47 million on an on-market share buy-back over six months. Combined with the final dividend, Whitehaven expects to return up to A$159 million to shareholders in respect of FY26.

FY27 outlook includes higher coal prices and lower financing costs

Whitehaven enters FY27 against a more favourable commodity-price backdrop. The company reported that premium hard coking coal prices were around US$215–235/t at the start of FY27, compared with approximately US$180–190/t at the beginning of FY26. Thermal coal prices had also improved, with gC NEWC averaging about US$130/t in July 2026 versus US$110/t in July 2025.

FY27 managed ROM production guidance is 38.0–41.0Mt, while managed coal sales are expected at 30.4–33.0Mt. Unit costs are guided to A$132–147/t, with Capital Expenditure expected at A$390–490 million.

The April 2026 debt refinancing is expected to reduce annual interest costs by approximately A$50–55 million. The company also has a final US$100 million deferred payment to BMA due in April 2027, followed by the final coal-price contingent payment in July 2027.

Conclusion

Whitehaven Coal's FY26 result illustrates the impact of weaker coal prices and currency movements despite higher production and lower unit costs. Revenue, underlying EBITDA and underlying NPAT all declined, while net debt increased substantially. At the same time, operational volumes reached guidance, costs improved and the beginning of FY27 has brought higher benchmark coal prices. The next financial period will therefore depend on the interaction between Commodity prices, production levels, cost performance, financing savings and the remaining BMA payment obligations.