New Hope Corporation (ASX:NHC): Coal Volumes Rise as FY26 Earnings Decline

Aditi Sarkar

12 November 2026 03:27 PM AEDT

New Hope Corporation (ASX:NHC): Coal Volumes Rise as FY26 Earnings Decline

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Highlights

New Hope (ASX:NHC) reported FY26 saleable coal output of 11.5 million tonnes.
Coal sales reached 11.8 million tonnes, increasing 11.8% year-on-year.
FY26 underlying EBITDA declined to AUD 514.3 million from AUD 765.8 million.
The company declared a fully franked final Dividend of 30 cents per share.

New Hope Corporation Limited (ASX:NHC) produces and sells thermal coal through Mining operations in New South Wales and Queensland, with Bengalla and New Acland among its principal assets. Its latest annual results showed higher coal volumes but lower Earnings as mining costs and Depreciation increased. On 12 November 2026, New Hope shares were quoted at AUD 5.315, up 0.09% during the session. The figures place attention on how mine sequencing, production rates and operating expenditure developed through FY26.

Coal Operations Across Two Australian States

New Hope (ASX:NHC) operates the Bengalla coal mine in New South Wales and the New Acland operation in Queensland. Its Business involves extracting, processing and Marketing coal, and operating performance depends on available mining areas, equipment utilisation, mine scheduling and logistics. The company has been increasing production at New Acland while progressing activity associated with Bengalla. Those operations have different development schedules and cost profiles, which matters when interpreting consolidated output and expenditure.

At Bengalla, the company reported a return to a 13.4-million-tonne-per-annum run-of-mine production rate on a 100% basis in the second half of FY26. This followed work to realign the pit sequence after wet weather affected mining activity. New Acland continued its Stage 3 ramp-up, with the planned access to Manning Vale West representing an important operational step. New Hope (ASX:NHC) therefore entered its next reporting period with attention on production consistency at both sites rather than coal tonnage alone.

FY26 Coal Volumes and Financial Results

For the financial year ended 31 July 2026, New Hope reported saleable coal production of 11.5 million tonnes and coal sales of 11.8 million tonnes. These represented increases of 7.6% and 11.8%, respectively, compared with FY25, and both figures were at or above the upper end of the stated 10.2–11.5 million tonne guidance ranges. The higher volumes were supported by New Acland ramp-up activity and Bengalla’s recovery in the second half.

The increase in shipments did not translate into higher group earnings. New Hope (ASX:NHC) reported underlying EBITDA of AUD 514.3 million for FY26, down from AUD 765.8 million in FY25. Net profit after tax was AUD 161.0 million, compared with AUD 439.4 million previously. Group free-on-board cash costs rose to AUD 88.9 per tonne from AUD 82.4 per tonne, an increase of 7.9%. The company attributed cost pressures partly to additional prime overburden movement connected with revised pit sequencing at Bengalla.

New Hope also identified increased depreciation associated with equipment supporting the Bengalla Growth Project and the New Acland ramp-up. Cash generated from Operating Activities was AUD 564.1 million in FY26, while available cash stood at AUD 778.5 million on 31 July 2026. The board declared a fully franked final dividend of AUD 0.30 per ordinary share, payable on 15 October. These disclosures illustrate the distinction between operating cash generation, reported profitability and decisions about Shareholder distributions.

Risks and Operational Milestones

New Hope (ASX:NHC) remains exposed to coal pricing, weather-related disruptions, mine scheduling and higher stripping or equipment costs. Changes in the coal market can affect realised selling prices independently of production volume. Additional overburden movement may also influence unit costs while new mining areas are accessed. The FY26 results demonstrate that an increase in output does not by itself establish an improvement in earnings or margins.

What to Watch Next

The company scheduled its FY27 first-quarter activities report for 16 November 2026. That release should provide a more recent indication of Bengalla output, New Acland ramp-up progress and operating costs. Investors can also monitor access to Manning Vale West and whether production scheduling improves the balance between coal extracted and waste removed. New Hope (ASX:NHC) has not established through the FY26 result alone what its subsequent earnings will be.

Key Insights

New Hope’s FY26 operating volumes increased, but the year also brought lower EBITDA and profit, alongside higher cash costs per tonne. Bengalla sequencing and New Acland development remain central to the company’s near-term operating disclosures. Subsequent quarterly reports will help assess whether higher tonnage is accompanied by changes in cost performance and cash generation.

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