Key Highlights

• For FY26, saleable coal production was 11.5 million tonnes, up 7.6%, and coal sales were 11.8 million tonnes, up 11.8%.

• New Acland is working towards about 5 million tonnes of saleable coal a year, up from 3.3 million tonnes in FY26.

• New Hope typically reports quarterly production updates, and the next should show whether New Acland is progressing towards its 5 million tonne goal and how Maxwell is ramping.

• Net profit after tax dropped to $161 million, yet Operating Cash Flow was $564.1 million, the available cash balance was $778.5 million at the end of July 2026, and total dividends rose to 40 cents per share.

Why would a coal producer pay a bigger Dividend in a year when profit fell sharply? New Hope Corporation's (ASX:NHC) FY26 result, released on 15 September 2026, shows the answer lies in cash. Net profit after tax dropped to $161 million, yet operating cash flow was $564.1 million, the available cash balance was $778.5 million at the end of July 2026, and total dividends rose to 40 cents per share. The result is a useful case study in how Volume growth, price weakness and cash conversion interact in a Commodity business.

New Hope's financial year ends on 31 July.

The FY26 numbers

For FY26, saleable coal production was 11.5 million tonnes, up 7.6%, and coal sales were 11.8 million tonnes, up 11.8%. Bengalla, in which New Hope holds an 80% interest, contributed 8.2 million tonnes saleable on that basis, while New Acland produced 3.3 million tonnes, up 17.3%.

Against those higher volumes, the average realised coal price was $145.20 per tonne, down 10%, and group free-on-board cash costs rose 7.9% to $88.90 per tonne. Underlying EBITDA fell 32.8% to $514.3 million and NPAT fell 63.4% to $161 million.

The arithmetic of the unit Margin explains the squeeze. A lower price and a higher cost compress that gap even when tonnes rise.

Dividends and Capital management

The final dividend was 30 cents per share, fully franked. Total FY26 dividends were 40 cents, up from 34 cents in FY25. An on-market buyback of up to $100 million is in place.

Paying more while earning less is possible because dividends are paid from cash and retained earnings, not just current-year profit. If coal prices stay lower, the payout may become harder to hold at the same level, particularly if capital spending on growth projects increases.

Business model and Revenue drivers

New Hope is an Australian coal miner. Its revenue is the product of tonnes sold and the price received, and the latter is linked to international coal benchmarks. Costs include mining, processing, rail and port charges, and royalties.

Bengalla in New South Wales and New Acland in Queensland are the two main producing Assets named in the summary. A third, Maxwell, is expected to add production as it ramps up.

Growth targets

New Acland is working towards about 5 million tonnes of saleable coal a year, up from 3.3 million tonnes in FY26. The company's long-term target is about 15 million tonnes a year of group saleable production, compared with 11.5 million tonnes in FY26. If those targets are reached, volume would rise by around 30% from the FY26 base, which the summary says should help earnings if prices hold. The words "if prices hold" carry weight: higher tonnes do not offset weaker prices, as FY26 showed.

Competitive position and sector backdrop

Coal producers are price takers. Competitive Advantage comes from cost position, product quality, logistics access and the length of asset lives. New Hope's cost per tonne rose in FY26, which is a point to watch, because lower-cost producers fare better when prices are weak.

Thermal coal also faces policy and Demand risk over the long term as energy systems evolve, though demand remains tied to power generation in Asian markets in the near term. This is general industry context rather than a company disclosure.

Risks

- Coal price volatility: the 10% fall in realised price shows how quickly earnings respond.

- Cost inflation: FOB cash costs per tonne rose 7.9%.

- Execution: the ramp-ups at New Acland and Maxwell must deliver the planned tonnes.

- Concentration: Bengalla provides the bulk of production, according to the volumes reported.

- Regulatory, environmental and social licence risks for coal projects, including approvals and Royalty changes.

- Capital allocation: balancing dividends, Buybacks and growth spending from a cash balance of $778.5 million.

What to watch next

New Hope typically reports quarterly production updates, and the next should show whether New Acland is progressing towards its 5 million tonne goal and how Maxwell is ramping. The half-year result, expected around March 2027 based on previous timing (an assumption), will show whether price and cost trends are improving. Investors should also watch coal benchmark prices, rail and port performance, and the buyback's pace.

FY26 shows a Business growing volumes and generating cash while earnings sit under pressure from price and cost.