Key Highlights

  • Underlying NPAT reached $822 million, up 831% on the prior corresponding period, while reported NPAT came in at $1.2 billion.
  • Record Underlying EBITDA of $2.6 billion was achieved on record Revenue of $6.5 billion, representing a 183% increase year-on-year.
  • Net Debt was reduced by $1.1 billion to $4.3 billion, with Liquidity doubling to $2.4 billion during the year.
  • The Board declared a fully franked full-year Dividend of $0.83 per share, representing a 20% payout of Underlying NPAT.

Mineral Resources Limited (ASX:MIN) reported what it described as the strongest financial result in its 20-year listed history for the full year ended 30 June 2026 (FY26). Reported net profit after tax stood at $1.2 billion, up 236% on the prior corresponding period, while Underlying NPAT climbed to $822 million, an increase of 831% over FY25. The company attributed the improvement to growth in its Mining Services division, the ramp-up of the Onslow Iron project, and improved performance and pricing within its Lithium business.

Group revenue reached a record $6.5 billion, up 44% on the previous year, supported by record volumes across all operating divisions combined with improved Commodity prices. Underlying EBITDA rose 183% to $2.6 billion, translating into an Underlying EBITDA Margin of 39%. Mining Services delivered record Underlying EBITDA of $976 million on the back of record volumes, while Iron Ore was the single largest contributor to earnings, generating $1.0 billion in Underlying EBITDA as Onslow Iron reached nameplate capacity and achieved higher prices. The Lithium division added $771 million in Underlying EBITDA, reflecting record volumes and stronger prices in the second half of the year.

Non-Cash Items Behind the Reported Result

The gap between reported and Underlying Profit was influenced by several notable items. Reported NPAT included a $168 million non-cash foreign exchange gain, a $134 million gain on contingent consideration linked to the Morgan Stanley Infrastructure Partners (MSIP) transaction over the Onslow Iron haul road, and a $78 million non-cash financial Assets Revaluation gain. These gains were partially offset by a $69 million Impairment relating to the Lucky Bay garnet operation, which was subsequently placed into care and maintenance effective 1 July 2026.

Operating cash flows before interest and tax were $2.4 billion for the year, which included $430 million of receipts on the Onslow Iron carry loan, with $335 million still outstanding as at 30 June 2026. Excluding movements on the carry Loan inflow and an iron ore prepayment, operating cash flows before interest and tax were $2.6 billion, representing cash conversion of 102% on Underlying EBITDA. Free cash flow for the year totalled $849 million after Capital Expenditure of $1.1 billion and distributions to MSIP of $124 million.

Balance Sheet Strengthens as Net Debt Falls

The FY26 results materially strengthened the company's balance sheet. Liquidity increased to $2.4 billion at year end, comprising $1.6 billion of cash and an undrawn $800 million revolving Credit facility. Net debt reduced by $1.1 billion to $4.3 billion, bringing the net-debt-to-Underlying EBITDA ratio down to 1.7 times. Should the proposed transaction with POSCO Holdings Inc complete as anticipated, gross proceeds of US$765 million are expected to further reduce net debt to $3.2 billion, equivalent to approximately 1.2 times net-debt-to-Underlying EBITDA.

Reflecting the improved financial position, the Board declared a fully franked full-year dividend of $0.83 per ordinary share, representing a 20% payout of Underlying NPAT. The final dividend is scheduled for payment on 30 September 2026 to shareholders on the register as at 9 September 2026, marking the reinstatement of Shareholder distributions following the company's stronger year.

Divisional Outlook for FY27

MinRes enters FY27 forecasting growing volumes across every operating division. The Mining Services Business is expected to expand further from its FY26 record, underpinned by long-term contracted revenue including life-of-mine agreements with joint ventures and toll road Earnings from Onslow Iron. Approximately 70% of the Mining Services order book carries a contract life of 15 years or longer, with growth expected from Onslow Iron, increased activity at Mt Marion and new contracts secured during FY26.

In Iron Ore, the successful ramp-up of Onslow Iron has added a low-cost, long-life asset to the portfolio, with a sixth transhipper operational from June 2026 and a seventh vessel arriving in August, pushing installed capacity toward 40 million tonnes per annum. At the Pilbara Hub, the transition from Wonmunna to the nearby Lamb Creek mine is nearing completion. Within Lithium, all three processing trains at Wodgina are expected to operate throughout FY27, while Mt Marion will experience a transitional year as the company opens its northern pits, with FOB cost guidance expected to increase before declining from FY28. Bald Hill is expected to reach full capacity of 140,000 dry metric tonnes of SC6 in the second quarter of FY27. The agreement with POSCO to acquire a 30% interest in MinRes' 50% ownership of Wodgina and Mt Marion is expected to complete in the first half of FY27, subject to conditions precedent.

Conclusion

Mineral Resources delivered a full-year result that marked a substantial turnaround from prior periods, driven by the ramp-up of Onslow Iron, record contributions from Mining Services and improved lithium market conditions. The reduction in net debt, expansion of liquidity and reinstatement of dividend payments point to a materially strengthened Balance Sheet heading into FY27, while growth initiatives across iron ore, lithium and energy remain in progress across the portfolio.