Key Highlights

• For the year ended 31 July 2026 (FY26), New Hope reported net profit after tax of A$161 million, down from A$439 million a year earlier, on Revenue of A$1.766 billion, compared with A$1.775 billion.

• Its main Assets are an 80 per cent interest in the Bengalla open-cut thermal coal mine in the Hunter Valley, New South Wales, and the New Acland mine on Queensland's Darling Downs, which it operates.

• It also holds a 25.97 per cent Equity interest in Malabar Resources, a metallurgical and thermal coal producer in New South Wales, and it exports through the Queensland Bulk Handling terminal at the Port of Brisbane.

• Underlying EBITDA for FY26 was A$514.3 million, down 32.8 per cent, and Operating Cash Flow was A$564.1 million.

Why is New Hope's coal output rising while profit falls?

Why did New Hope (ASX:NHC) Corporation report a sharp fall in annual profit in a year when it dug and sold noticeably more coal than in the previous year? The answer lies mainly in price and cost: the company produced and sold more thermal coal, but received less per tonne and spent more to deliver it, so Earnings fell even as volumes grew.

For the year ended 31 July 2026 (FY26), New Hope reported net profit after tax of A$161 million, down from A$439 million a year earlier, on revenue of A$1.766 billion, compared with A$1.775 billion. Even so, it raised its total Dividend and kept a share buyback in place. The results were released on 15 September 2026.

What New Hope does and how it earns

New Hope is an Australian coal producer. Its main assets are an 80 per cent interest in the Bengalla open-cut thermal coal mine in the Hunter Valley, New South Wales, and the New Acland mine on Queensland's Darling Downs, which it operates. It also holds a 25.97 per cent equity interest in Malabar Resources, a metallurgical and thermal coal producer in New South Wales, and it exports through the Queensland Bulk Handling terminal at the Port of Brisbane.

Revenue is driven by saleable tonnes multiplied by the price achieved, which tracks international thermal coal benchmarks such as the Newcastle index. Costs, especially at the mine gate, then determine how much of that revenue becomes profit.

FY26 results: more coal, lower margins

Underlying EBITDA for FY26 was A$514.3 million, down 32.8 per cent, and operating cash flow was A$564.1 million. Group saleable coal rose 7.6 per cent to 11,518 thousand tonnes and coal sales rose 11.8 per cent to 11,789 thousand tonnes.

Prices moved the other way. New Hope's Quarterly Report put the group average realised price at A$143.2 per tonne, against A$157.1 per tonne in FY25, though those figures were subject to final audit. the update of the full results quoted a slightly different average of A$145.20 per tonne, down about 10 per cent, and group free-on-board cash costs up 7.9 per cent to A$88.90 per tonne.

Available cash at 31 July 2026 was A$778.5 million, made up of A$484.8 million in cash and equivalents and A$293.7 million in fixed income investments.

Dividends and Capital returns

The board declared a fully franked final dividend of 30 cents per share, bringing the FY26 total to 40 cents, up from 34 cents in FY25. The Record Date was 22 September and payment was due on 15 October. An on-market buyback of up to A$100 million is also in place.

Paying a higher dividend from lower profit is possible because the company holds substantial cash and generated more operating cash than it reported in profit. Future payouts, however, depend on coal prices and spending commitments, and the board has discretion.

Mine-by-mine operating performance

Bengalla produced 10,031 thousand tonnes of run-of-mine coal and sold 8,233 thousand tonnes, with a free-on-board cash cost, excluding royalty, of A$81.3 per tonne. This was within the cost guidance of A$81 to A$89 per tonne, and above the top of its saleable coal and sales guidance ranges. Sustaining capital was A$84.0 million, below revised guidance of A$100 million to A$130 million.

At New Acland, run-of-mine coal was 6,893 thousand tonnes and sales were 3,556 thousand tonnes, up 37.0 per cent on FY25. That was above the guidance range of 2,800 to 3,400 thousand tonnes. Road realignment spending is forecast at A$65 million to A$75 million, and the mine employs more than 300 people.

Malabar's Maxwell Underground Mine opened on 9 July 2026, creating 430 permanent jobs, after its longwall produced 0.5 million tonnes in the June quarter. Malabar reported a realised price of US$142 per tonne, a 5 per cent premium to the gC NEWC 6000 index.

Sector conditions and competitive position

Seaborne thermal coal remains exposed to Demand in Asia, to the pace of renewable energy additions and to weather-driven power demand. Prices in FY26 were lower on average than a year earlier, as New Hope's own results show, and there is no assurance of recovery. New Hope is a mid-sized producer competing with larger Australian, Indonesian and Russian exporters.

Its competitive strengths are a substantial cash balance, modest scale that allows operational flexibility, and Bengalla's cost position within guidance. The main challenge is that a single commodity, mostly thermal coal, drives earnings, which limits diversification.

Growth plans and resource base

Management has said New Acland is working towards about 5 million tonnes a year of output, that Maxwell should contribute more as it ramps up through Malabar, and that its long-term ambition is around 15 million tonnes a year of group saleable coal. These are targets rather than guarantees, and each depends on approvals, execution and prices.

Risks and what to watch next

Coal price is the largest uncertainty, followed by cost inflation. FOB cash costs rose in FY26 and a higher strip ratio, 4.1 times against 3.9 times, meant more overburden moved per tonne of coal. Regulatory, environmental and community scrutiny of coal also affects approvals, financing and long-term demand, and project timelines at New Acland have historically been sensitive to these.

Operational risks include weather, rail and port availability, and Mining equipment performance. Product stocks fell 32.0 per cent to 564 thousand tonnes, which means less buffer if production stumbles or shipping is disrupted.