Key Highlights

  • Revenue rose 44% to A$6.5 billion for the year to 30 June 2026.
  • Underlying EBITDA rose 183% to A$2.6 billion, at a record 39% margin.
  • Underlying NPAT was A$822 million, and a fully Franked Dividend of 83 cents per share was declared.
  • Net Debt was 1.7 times underlying EBITDA, and net debt after the proposed POSCO transaction was reported at A$3.2 billion.

What does a miner's best result in 20 years tell investors when its Balance Sheet is still carrying billions in net debt? For Mineral Resources Limited (ASX:MIN), known as MinRes, the FY26 result published on 27 August 2026 shows a Business that has moved from a stretched position towards more encouraging earnings, driven by iron ore, Mining services and a recovering lithium division, while Leverage remains a central issue to watch.

The central development: record earnings, still-high debt

According to the company's own announcement of 27 August 2026, FY26 Revenue was A$6.5 billion, up 44% on the prior year. Underlying EBITDA was A$2.6 billion, up 183%, at a record 39% margin. Underlying net profit after tax was A$822 million, up 831%, and the board declared a fully franked dividend of 83 cents per share, a 20% payout of underlying NPAT. Liquidity was A$2.4 billion.

Leverage is the counterweight. Net debt to underlying EBITDA was 1.7 times, and net debt after the proposed POSCO transaction was reported at A$3.2 billion. The percentage jumps are large because the prior year was depressed; they describe recovery from a low base rather than a new level of normal earnings.

Business and revenue drivers

MinRes operates three connected parts, according to the company's divisional reporting.

Mining Services produced a record 341 million tonnes of material moved and a record underlying EBITDA of A$689 million. This contract business, which crushes and hauls for third parties, is a steadier earner than commodity-linked segments, and the company guides to Volume growth of 9% to 14% in FY27.

Iron ore was the largest contributor with underlying EBITDA of about A$1.0 billion. Within it, the Onslow Iron project in the Pilbara reached its 35 million tonne per annum nameplate capacity in August 2025, around three years after the final Investment decision. FY26 production was 19.7 million tonnes on a 100% basis at a free-on-board cost of A$52 per tonne, with Onslow underlying EBITDA of A$909 million. The company says installed capacity is moving towards 40 million tonnes per annum with additional transhippers.

Lithium contributed underlying EBITDA of A$771 million, combining Wodgina (317,000 dry metric tonnes of SC6 spodumene concentrate) and Mt Marion (242,000 tonnes). Lithium prices were substantially below their 2022 peak, so the division's contribution is sensitive to any further price move.

The POSCO transaction

MinRes has agreed a transaction with POSCO with gross proceeds of US$765 million, subject to conditions precedent, which it expects to complete in the first half of FY27. The release does not set out everything in the structure, so The company's disclosures cover the ASX announcement for the asset or stake involved. Completion would reduce net debt, and the A$3.2 billion figure is already stated after allowing for it.

Operational milestones and recent news

Looking ahead within the lithium division, the company said clean ore is expected to feed all three Wodgina trains from the second quarter of FY27, Bald Hill is targeting nameplate capacity in the first half of FY27, and Mt Marion is in a transitional year with a flotation plant investment and underground mining. The company reported first underground portal blasts at Mt Marion on 3 November 2026.

Management also announced on 2 November 2026 that chief financial officer Mark Wilson had given notice of retirement, effective at the end of December 2026. A CFO change during a deleveraging phase is a governance point worth monitoring, though the announcement itself does not suggest strategic change.

Sector and competitive position

MinRes competes in three markets at once. In iron ore it is a smaller, newer Pilbara producer than the dominant majors, so its position relies on keeping costs below the industry's marginal cost; the A$52 per tonne FOB figure is the metric to watch. In mining services it competes with other contractors for long-life contracts, where its integrated pit-to-port model is a point of difference.

Material risks

Leverage. Net debt of A$3.2 billion after POSCO leaves less Margin for error if Commodity prices fall.

Commodity prices. Iron ore and spodumene prices drive roughly three-quarters of the divisional EBITDA reported.

Project execution. Wodgina ore feed, Bald Hill ramp-up and the Mt Marion underground transition all need to run to plan.

Transaction risk. The POSCO deal remains subject to conditions precedent.

Management change. The CFO departs at the end of December 2026.

Counterparty and China demand. Both iron ore and lithium depend on Chinese industrial and battery demand.

What to watch next

Each of these provides useful, checkable evidence on whether Earnings quality is improving as debt falls.

The FY26 result is a genuine operational achievement by the company's own measures, but it comes with a balance sheet that still demands a continued discipline of Capital spending. Reading each division separately, rather than the headline profit, gives the clearest view of what is driving the numbers.