New Hope Corporation (ASX:NHC): FY26 Coal Volume Growth Meets Lower Earnings

Aditi Sarkar

10 November 2026 07:44 PM AEDT

New Hope Corporation (ASX:NHC): FY26 Coal Volume Growth Meets Lower Earnings

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

FY26 saleable coal production was 11.5 million tonnes, while coal sales reached 11.8 million tonnes.
Underlying FY26 EBITDA was AUD 514.3 million, down from AUD 765.8 million in FY25.
FY26 net profit after tax was AUD 161.0 million, compared with AUD 439.4 million in FY25.
The board declared a fully franked FY26 final Dividend of AUD 0.30 per share.

New Hope Corporation (ASX:NHC) operates in the coal Mining sector. New Hope Corporation (ASX:NHC) shares closed at AUD 5.37 on 10 November 2026. Its 2026 developments involve operational performance, Investment requirements and business risks that differ across the company's Assets and reporting periods.

Production Exceeded the Guidance Range

New Hope reported saleable coal production of 11.5 million tonnes in FY26, a 7.6% increase on FY25, and coal sales of 11.8 million tonnes, up 11.8%. Both measures exceeded the upper end of the company's guidance range. Production growth reflected the continued ramp-up of New Acland and a stronger second-half contribution from Bengalla. These are reported outcomes rather than forecasts. At Bengalla, pit sequencing was realigned after weather disruption, and the mine returned to a 13.4-million-tonne annualised run-of-mine production rate on a 100% basis during the second half. New Acland continued developing access to the Manning Vale West pit. The reported Volume growth is significant, but sales tonnes alone do not determine profitability.

Earnings and Unit Costs Diverged

New Hope Corporation (ASX:NHC) reported underlying FY26 EBITDA of AUD 514.3 million, compared with AUD 765.8 million in FY25, a decline of 32.8%. Net profit after tax fell to AUD 161.0 million from AUD 439.4 million. The group reported free-on-board cash costs of AUD 88.9 per tonne, compared with AUD 82.4 per tonne in FY25, an increase of 7.9%. The company linked the higher cost base partly to prime overburden movement and pit re-sequencing at Bengalla. Increased Depreciation associated with equipment purchases and New Acland's ramp-up also affected net profit. Accordingly, the operational improvement in production volumes did not translate into Earnings growth. Coal selling prices, mine costs and depreciation need to be considered together when assessing FY26 performance.

Cash, Dividends and Funding

Operating activities generated AUD 564.1 million in cash during FY26. New Hope reported available cash of AUD 778.5 million at 31 July 2026, comprising cash and cash equivalents and fixed-income investments. The board declared a fully franked final dividend of AUD 0.30 per ordinary share, payable in October 2026. During the year, the company issued AUD 300 million of senior unsecured convertible notes due in 2032 and repurchased AUD 293.3 million principal of notes due in 2029. This altered the Maturity profile but did not eliminate financing obligations. New Hope Corporation (ASX:NHC) also increased its Equity interest in Malabar Resources to 25.97%, which represents an investment interest rather than wholly owned mine output.

What the FY26 Results Indicate

For New Hope Corporation (ASX:NHC), FY26 illustrates the distinction between production execution and commodity-linked profitability. Higher tonnes were delivered alongside lower EBITDA and profit, while unit costs rose. Bengalla's sequencing and New Acland's ramp-up are operational matters that can influence future costs and volumes. Coal market conditions remain outside the company's direct control, and dividends are subject to future board decisions. New Hope Corporation (ASX:NHC) has reported material cash generation, but its FY26 earnings decline is also a central part of the operating picture. Any assessment of future performance requires updated prices, costs, production and Capital Expenditure rather than extending FY26 outcomes mechanically.

Key Insights

New Hope Corporation (ASX:NHC) delivered higher FY26 coal volumes but lower earnings and higher unit cash costs. Its reported cash position and final dividend sit alongside continued operational and coal-price exposure.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.