Iofina plc

Iofina said 2025 revenue was $66.5 million, up 22% year over year, and average realized 100% iodine pricing increased to $74.02/kg from $68.60/kg in 2024, an 8% increase. The company reported record production of 743 metric tons of crystalline iodine and record EBITDA of $11.8 million. Management said sold volume was 780 metric tons, with about $2.5 million of revenue and about $1 million of profit pushed from late 2024 into 2025 because of shipping timing. On the balance sheet, cash was $11.7 million, bank debt was $6.5 million, and net cash was $5.2 million. Looking ahead, the Permian Basin plant is expected to come online in Q3 2026, cost about $8 million to $9 million, and produce 150 to 220 metric tons annually; management also said first-half 2026 crystalline iodine output is now expected to be closer to 385 metric tons versus an earlier 225 to 255 metric ton range.

Thomas Becker emphasized that 2025 validated Iofina’s expansion strategy, with record production, record EBITDA and record revenues, while maintaining financial discipline. He highlighted the company’s shift from two Oklahoma core areas to a third core area in the Permian Basin, and said the business is focused on scaling its IOsorb platform where it already has expertise. His tone was optimistic and forward-looking, with repeated emphasis on a 1,000 metric ton run rate next and a 2,000 metric ton target over 3 to 4 years.

Malcolm Lewin focused on the financial drivers behind the record year: $66.5 million of revenue, an 8% increase in realized iodine pricing to $74.02/kg, and only a 2% increase in average plant operating costs. He noted the one-off $2.1 million government subsidy, which was tied to U.S. COVID support programs and carried a net benefit of about GBP 1.5 million after tax, and explained that deferred tax is largely non-cash because of tax allowances on fixed assets. He also pointed to $37 million of property, plant and equipment after adding IO#11, receivables of $25 million at year-end that have since fallen to below 50% of that level, $11.7 million in cash, and $6.5 million in bank debt, including a facility draw for IO#11 and a 2020 loan due to be paid off by the end of next year.

Analyst questions focused on iodine hedging, customer concentration, capital allocation, plant pace, and the 2,000 metric ton growth target. Management said most sales are spot-based with pricing updated quarterly, that customer concentration is not a major concern because buyers are global and the company is broadening its base, and that capital will mainly fund new IOsorb plants over the next 2 to 3 years. On returns to shareholders, management said dividends or buybacks could be considered once the business becomes materially cash generative after several more plant builds. They also said the Permian Basin should be somewhat less exposed to winter production issues because of warmer brines and fewer icing-related disruptions, though they would not guarantee that outcome.