Key Highlights

  • Group NPAT reached $145 million for FY26, a Reversal from a $955 million loss recorded in FY25.
  • Total Revenue declined 12% to $462.9 million, even as underlying EBITDA improved to $285.9 million from a $43.0 million loss in FY25.
  • Operating cash flow rose to $132.4 million, up from $42.9 million in the prior year, while underlying free cash flow increased 176% to $134.0 million.
  • A final fully Franked Dividend of 5 cents per share was declared, equivalent to approximately 30% of FY26 underlying free cash flow.

IGO Limited (ASX:IGO) reported a return to profitability for the financial year ended 30 June 2026 (FY26), with Group net profit after tax of $145.3 million compared with a $954.6 million loss in FY25. The improvement was primarily attributed to a $207.3 million share of net profit from Tianqi Lithium Energy Australia (TLEA), the joint venture between IGO and Tianqi Lithium Corporation, alongside improved Greenbushes earnings, Nova Operation cash flows and continued cost and Capital discipline.

Total revenue for the year declined 12% to $462.9 million from $527.8 million in FY25. Reported EBITDA came in at $322.9 million, while underlying EBITDA was $285.9 million, a marked improvement from the $43.0 million underlying EBITDA loss recorded in the prior year. Underlying net profit after tax was $109.1 million, compared with an underlying net loss of $173.3 million in FY25. The FY26 result also benefited from the absence of significant impairments recorded in the prior year relating to the Kwinana Refinery and deferred tax asset derecognition.

Greenbushes and Kwinana Performance

The Greenbushes Operation, in which IGO holds a 24.99% indirect interest, produced 1.41 million tonnes of spodumene concentrate on a 100% basis at cash costs of $415 per tonne, up 28% from $325 per tonne in FY25. Production finished at the upper end of revised guidance. Greenbushes generated full-year revenue of $2,858.4 million and EBITDA of $2,098.8 million on a 100% basis, an EBITDA Margin of 73%, up from 66% in the prior year, with an average realised spodumene price of US$1,443 per tonne compared with US$783 per tonne in FY25.

A fire at the Chemical Grade Plant 3 (CGP3) Facility in June 2026 took the plant offline for approximately seven weeks, with production recommencing in early August. The Kwinana Refinery, in which IGO holds a 49% interest, produced 8,839 tonnes of lithium hydroxide, up 30% on FY25's 6,782 tonnes, with conversion costs falling 19% to $18,379 per tonne. Production remained below the guided range of 9,000 to 11,000 tonnes as operational challenges associated with the ramp-up continued. Kwinana recorded a full-year EBITDA loss of $167.0 million on a 100% basis, compared with a $209.5 million loss in FY25.

Nickel Portfolio Simplification Continues

IGO's nickel portfolio was reshaped during FY26 through the completed sale of the Forrestania Operation to Medallion Metals and a post-year-end agreement to divest the Nova Operation to Global Lithium Resources. The Nova Operation generated revenue of $448.9 million and underlying EBITDA of $158.4 million, an EBITDA margin of 35%, with nickel production of 15,304 tonnes exceeding life-of-mine guidance and cash costs of $4.74 per pound, below guidance for the year.

The Forrestania Operation recorded an underlying EBITDA loss of $7.7 million ahead of the completed asset sale, which generated a $31.7 million gain on sale. The Cosmos Project, held in care and maintenance throughout the year, recorded an underlying EBITDA loss of $12.1 million. On 15 July 2026, IGO announced a binding agreement to divest the Nova Nickel Operation to a Subsidiary of Global Lithium Resources for total consideration of $7.0 million, with completion expected following the cessation of mining, currently anticipated in the December 2026 quarter.

Balance Sheet and Capital Management

IGO ended FY26 with cash and cash equivalents of $386.5 million, up 38% from $279.7 million a year earlier, along with $99.1 million in marketable securities and a fully undrawn $300.0 million corporate Debt facility. The Board declared a fully franked final dividend of 5.0 cents per share, equivalent to approximately $37.9 million and around 30% of FY26 underlying free cash flow. No Interim Dividend was declared during the year.

The company also reported board and executive Leadership changes during the period, including the appointment of Dr Vanessa Guthrie AO as Chair from 1 January 2026 and Dean Jenkins as a Non-executive Director. For FY27, IGO issued guidance for Nova nickel production of 19,000 to 20,000 tonnes on a life-of-mine basis, Greenbushes spodumene production of between 1,550 and 1,750 kilotonnes, and Kwinana lithium hydroxide production of 9,000 to 11,000 tonnes.

Conclusion

IGO's FY26 results mark a clear turnaround from the substantial losses recorded in FY25, supported by stronger contributions from Greenbushes and Nova alongside continued simplification of the nickel portfolio through the Forrestania and Nova divestments. While total revenue declined during the year, improved underlying earnings, higher cash generation and a strengthened Balance Sheet accompanied the reinstatement of dividend payments as the company repositions toward lithium and copper growth opportunities.