Mineral Resources Limited

MinRes reported FY26 revenue of $6.5 billion, up 44%, and underlying EBITDA of $2.6 billion, up 183%. Underlying NPAT was $822 million, compared with a loss in FY25. Mining Services delivered record underlying EBITDA of $976 million, up 32%, and record volumes of 341 million tonnes; iron ore contributed EBITDA of $1 billion and lithium EBITDA was $771 million. FY26 operating cash flow, excluding the Onslow Iron carry loan and iron ore prepayment, was $2.6 billion, with free cash flow of $849 million; net debt fell by about $1.1 billion to $4.3 billion and liquidity reached $2.4 billion. For FY27, guidance includes Mining Services volumes of 370 million to 390 million tonnes, Wodgina sales volume of 360,000 to 390,000 tonnes of SC6, FOB cost guidance of around $640 to $710 a tonne, and FY27 CapEx of $1.425 billion pre-financing or $1.27 billion net financing basis; sustaining CapEx is guided at $815 million. The Board declared a fully franked final dividend of $0.83 per share, representing a 20% payout of underlying NPAT.

Chris Ellison framed FY26 as a milestone year, highlighting record financial results, stronger governance and the company’s 20-year journey from a small contractor to a diversified resources business. He repeatedly stressed that Mining Services remains the “heartbeat” of MinRes, while Onslow Iron, lithium recovery and brownfield expansions are extending the asset base and cash generation. His tone was confident and forward-looking, with emphasis on disciplined growth, balance-sheet repair and the option to return capital while still pursuing selected opportunities, especially copper.

Mark Wilson said FY26 was the strongest financial year in MinRes’ history and stressed the quality of earnings, not just the headline numbers. He cited operating cash flow of $2.6 billion and 102% cash conversion on underlying EBITDA, free cash flow of $849 million, net debt down to $4.3 billion, leverage down from 5.9x to 1.7x, and liquidity of $2.4 billion. He also highlighted debt-market actions that cut the weighted average cost of debt from 8.6% to 7.4%, reduced annual finance costs by more than $60 million, and extended average debt maturity to nearly 5 years. On capital allocation, he said the framework is balance sheet first, disciplined brownfield growth second, and surplus cash returns thereafter, with dividends contemplated when leverage is expected to be below 2x within a 12- to 18-month window.

Analysts focused on Mining Services growth, dividend policy, Pilbara iron ore economics, CapEx assumptions tied to the POSCO transaction, Onslow cost inflation, Bald Hill mine life, Wodgina expansion timing and the offshore copper opportunity. Management said Mining Services upside is driven by external work as well as higher strip at Mt Marion, while Chris Ellison said the company is looking at opportunities in Australia and offshore but is being selective. On the dividend, Mark Wilson said the $0.83 per share payout reflects a prudent use of surplus cash, that the old one-third/two-thirds split is no longer the rule, and that future dividends will depend on balance-sheet strength and opportunities in front of the Board. They also clarified that lithium CapEx was modeled at 50% ownership for guidance, while the POSCO deal would eventually move the stake lower after timing effects.