Whitehaven Coal Limited (ASX:WHC) operates metallurgical and thermal coal mines across Queensland and New South Wales. FY26 delivered record managed production and higher coal sales, while lower realised coal prices reduced Revenue and underlying earnings. The company also reduced unit costs, refinanced acquisition-related Debt and continued returning Capital through dividends and share buy-backs.

Managed Production Reaches 40.3 Million Tonnes

Whitehaven produced 40.3 million tonnes of managed run-of-mine coal in FY26, up 3% from the prior year and at the upper end of its guidance range.

Queensland operations contributed 20.1 million tonnes, while New South Wales contributed 20.2 million tonnes.

Managed sales of produced coal increased 8% to 32.7 million tonnes, while Equity sales totalled 26.0 million tonnes following the earlier sell-down of a 30% interest in Blackwater.

Revenue Declines as Achieved Prices Move Lower

Revenue declined 7% to A$5.4 billion in FY26.

The average achieved coal price was A$202 per tonne, compared with A$215 per tonne in FY25.

Metallurgical coal represented 57% of revenue, while thermal coal represented 43%.

The result shows that higher production and sales volumes did not fully offset lower realised prices and foreign-exchange effects during the year.

Unit Costs Fall to A$132 Per Tonne

Whitehaven reduced its unit cost of coal to A$132 per tonne from A$139 per tonne in FY25.

The company also delivered its targeted A$60 million to A$80 million of annualised cost savings during FY26.

Lower unit costs helped offset part of the effect of lower coal prices and supported margins across both the Queensland and New South Wales operations.

Underlying EBITDA Reaches A$1.3 Billion

Underlying EBITDA was A$1.3 billion for FY26.

Underlying NPAT was A$227 million.

The result reflected the combination of lower achieved coal prices, foreign-exchange movements, operating volumes and unit-cost reductions.

Cash generated from operations totalled A$1.1 billion, providing funding for debt obligations, Capital Expenditure and Shareholder distributions.

Statutory Profit Includes A$158 Million of Adjustments

Statutory NPAT was A$385 million.

This included A$158 million of adjustments to net profit, mainly associated with remeasurement of contingent consideration relating to the BMA transaction and foreign-exchange gains on net debt and deferred and contingent payments.

Underlying NPAT therefore provides a different view of recurring trading performance from the statutory result.

Queensland and New South Wales Remain Balanced Contributors

Whitehaven’s production base is split across Queensland and New South Wales.

Queensland includes the Blackwater and Daunia mines in the Bowen Basin, while the New South Wales portfolio includes Narrabri and the Gunnedah Basin open-cut operations.

The portfolio gives Whitehaven exposure to both metallurgical coal used in steelmaking and high-CV thermal coal used in electricity generation.

Narrabri Remains an Important NSW Asset

Narrabri is Whitehaven’s only underground mine and remains a major contributor to the New South Wales portfolio.

The mine is approved to produce up to 11Mt of run-of-mine coal annually and has approval to operate until 2044.

Longwall performance, mine sequencing and future development will remain important to maintaining production levels across the NSW business.

Blackwater and Daunia Support Metallurgical Coal Exposure

The Acquisition of Blackwater and Daunia materially increased Whitehaven’s exposure to metallurgical coal.

FY26 Queensland managed ROM production reached 20.1Mt.

The acquisition also introduced substantial deferred payment obligations, with the second US$500 million payment to BMA completed in April 2026.

Only the remaining deferred and contingent payments now sit between Whitehaven and completion of the acquisition payment structure.

Net Debt Ends FY26 at A$1.3 Billion

Net debt was A$1.3 billion at 30 June 2026.

The increase from earlier in the year reflected payment of the second US$500 million deferred acquisition instalment.

Available Liquidity at year-end was A$959 million.

The Balance Sheet therefore remains influenced by the financing of the Queensland acquisitions as well as ongoing operational cash generation.

Debt Refinancing Reduces Financing Costs

Whitehaven refinanced acquisition debt and smaller facilities during April 2026.

The new structure included US$900 million of senior secured notes and US$600 million of bank funding.

Management expects the refinancing to reduce annual interest costs by approximately A$50 million to A$55 million from May 2026.

Lower financing costs should reduce the cash burden associated with the acquisition debt.

Capital Returns Continue

Whitehaven returned A$156.4 million to shareholders during FY26.

This included A$79.8 million of dividends and A$76.6 million through on-market share buy-backs.

The final FY26 Dividend was 6 cents per share fully franked, taking total FY26 dividends to 10 cents per share.

Whitehaven also indicated that it intended to spend approximately A$47 million on further buy-backs over six months following the result.

Capital Allocation Remains Linked to Underlying Earnings

Whitehaven’s capital-allocation framework targets a Payout Ratio of 40% to 60% of underlying NPAT through a combination of dividends and share buy-backs.

The actual mix can vary depending on coal prices, debt levels, acquisition payments and capital requirements.

Future capital returns will therefore remain sensitive to operating cash generation and the completion of remaining acquisition-related obligations.

Gunnedah Infrastructure Supports NSW Production

The Gunnedah Coal Handling and Preparation Plant supports Whitehaven’s open-cut operations in the region.

The Facility is approved to process and dispatch up to 4.1 million tonnes of coal annually.

Infrastructure capacity, mine sequencing and development approvals will influence the amount of coal that can move through the NSW portfolio over time.

Vickery Remains a Development Option

Whitehaven continues to hold the Vickery Extension Project in New South Wales.

Construction and initial Mining activities commenced after Board approval of early works, with the project designed to produce a mix weighted toward metallurgical coal.

Future Investment decisions will depend on project economics, capital allocation and market conditions.

Key Risks and Areas to Watch

Coal prices remain the largest external Earnings variable because Whitehaven cannot control benchmark metallurgical and thermal prices.

Foreign-exchange movements, diesel costs, weather and mine sequencing can also affect realised margins.

Debt reduction, remaining acquisition payments, Narrabri performance, Queensland production and the pace of capital returns will remain key indicators through FY27.