Earnings call transcript: Pilbara Minerals posts record H2 2026 results, shares rise 4.1%

Pilbara Minerals released its full-year results for FY 2026, reporting a record performance with revenue soaring 152% to 1.9 billion Australian dollars. The company's underlying EBITDA reached 1.1 billion Australian dollars, and net profit after tax amounted to 526 million Australian dollars. Cash and liquidity rose to 2.29 billion Australian dollars and 2.79 billion Australian dollars, respectively, bolstering the company's financial flexibility.

Shares in Pilbara Minerals jumped 4.14% to $5.28 following the earnings announcement, edging close to the upper end of its 52-week trading range.

The company credited higher lithium prices, stronger sales volumes, and improved operating efficiency for the impressive results. Revenue and EBITDA margin surged, with the latter reaching 59% and highlighting significant operating leverage in a recovering lithium market. Pilbara Minerals stated that FY 2026 marked a turnaround for the company, driven by record production, rising sales volumes, and enhanced margins across its operations.

The turnaround was attributed to a 121% increase in realized lithium carbonate pricing to US$1,488 per tonne and 17% sales volume growth. Operating costs on a free-on-board basis decreased 9% to 569 Australian dollars per tonne, reflecting operational improvements.

Management also emphasized Pilbara Minerals' "through-the-cycle" strategy, which helped safeguard the balance sheet during market downturns and enabled rapid response when conditions improved. The company's success stands out in the volatile lithium market, where many peers have struggled. Low-cost assets, long-life Pilgangoora resource, and strong cash generation positioned Pilbara Minerals favorably compared to peers in weathering price swings.

Key financial metrics include a revenue of 1.9 billion Australian dollars, an underlying EBITDA of 1.1 billion Australian dollars with a 59% margin, and net profit after tax of 526 million Australian dollars. The company ended the year with a cash balance of 2.29 billion Australian dollars, marking a 135% increase, and total liquidity of 2.79 billion Australian dollars, including a 500 million Australian dollar undrawn revolving credit facility.

Pilbara Minerals did not disclose quarterly EPS or revenue figures for comparison with market expectations, but the full-year numbers indicate a stronger operating picture than anticipated earlier in the cycle.

For FY 2027, Pilbara Minerals raised its production guidance to 1.03 million to 1.1 million tonnes, as it prepares to ramp up the Ngungaju facility. The restart of Ngungaju is a priority for the upcoming year and will contribute higher-cost tonnes to the production mix. Capital expenditure is forecast at 620 million to 685 million Australian dollars, including investments in mine development, sustaining, and infrastructure, along with 165 million Australian dollars allocated for the P2000 expansion.

The company is also advancing the P2000 project, with a feasibility study expected in the December quarter of 2025, and the final investment decision contingent on the study outcomes and board approval. Additionally, the company is advancing the Colina project in Brazil, with study results anticipated in the December quarter of 2025.