Champion Iron (CIA) Q4 2026 earnings summary

Executive summary

• Quarterly production reached 3.4M tons (up 8% year-over-year), with sales of 3.45M tons and iron recovery at 80.6%, despite rail disruptions and harsh winter conditions.

• Revenues totaled $414.5M (CAD 414M), EBITDA was $114.3M, and net income reached $23.2M (EPS $0.04) for Q4 FY26.

• Completed the acquisition of Rana Gruber, expanding high-purity iron ore capabilities and European market access.

• Announced a revised dividend policy targeting 30–40% of trailing six-month free cash flows, with a declared semi-annual dividend of $0.02 per share.

• DRPF project commissioning advanced as planned, with initial production tests completed and commercial output expected by end of Q2 2026.

Financial highlights

• Q4 FY26 revenues were $414.5M, EBITDA $114.3M, net income $23.2M, and EPS $0.04.

• Cash balance at quarter-end was $296.8M, with total available liquidity exceeding $812.4M.

• Total cash cost per dmt sold was $82.7, impacted by higher fuel prices, rail disruptions, and inventory costs.

• All-in sustaining cost was $96.9/dmt sold; cash operating margin was 19.3% for the quarter.

• Debt net of cash stood at $365.4M.

Outlook and guidance

• DRPF project expected to deliver initial saleable production by end of June 2026, with ramp-up over 12 months.

• Liquidity expected to benefit from gradual sales of 1.3M wmt iron ore concentrate stockpiled at Bloom Lake and the port.

• Dividend policy provides flexibility for higher distributions in periods of strong results and low capital investments.

• Expects to generate significant liquidity from past CapEx investments as growth initiatives complete.

• Focus remains on liquidity preservation amid volatile macroeconomic and commodity price environments.