Iluka Resources (ILU) H1 2025 earnings summary

Executive summary

• Global economic uncertainty and shifting trade patterns impacted mineral sands and rare earths businesses differently, with subdued mineral sands demand and evolving rare earths markets.

• Net profit after tax was $92 million, down 31% year-over-year, with revenue declining 8% to $558 million and a 39% EBITDA margin despite lower prices.

• Disciplined operational focus and cost initiatives preserved margins, while significant capital investment continued in Balranald and Eneabba to underpin future growth.

• Major project execution advanced, with $402 million in group capital expenditure and progress at Eneabba rare earths refinery and Balranald.

• Interim dividend of 2 cents per share, fully franked, was declared, reflecting significant capital investment and lower profit.

Financial highlights

• Mineral sands revenue was $558 million, down 8% year-over-year, with underlying EBITDA of $218 million and a 39% margin.

• Net profit after tax decreased 31% to $92 million; basic earnings per share dropped to 21.5 cents.

• Operating cash flow was $115 million, down 39% year-over-year; free cash outflow was $361 million, reflecting heavy project investment.

• Net debt (excluding non-recourse debt) was $164 million at 30 June 2025, up from net cash at year-end 2024.

• Interim dividend of 2 cents per share, fully franked, down 50% from the prior year.

Outlook and guidance

• Balranald project remains on track for commissioning in H2 2025, with mining to commence in Q4.

• Eneabba rare earths refinery construction is advancing on schedule, with commissioning targeted for 2027.

• Full-year zircon-in-concentrate production guidance achieved in H1; further 30kt expected in H2.

• Synthetic rutile sales expected to be weighted towards the second half of the year.

• Well positioned to respond to market restocking with $1.2 billion in product inventory.