Iluka Resources (ILU) H1 2025 earnings summary

Executive summary

• Revenue for H1 ranged from $558 million to $577.8 million, with a 39% EBITDA margin despite global economic uncertainty and subdued mineral sands demand.

• Net profit after tax was $92 million, down 31% year-over-year, mainly due to lower realised prices for key products.

• Major capital projects, including Eneabba rare earths refinery and Balranald, progressed on schedule with significant investment.

• Interim dividend of 2 cents per share, fully franked, was declared, reflecting ongoing capital investment.

• Disciplined focus on safety, cost control, and market positioning continued.

Financial highlights

• H1 production of zircon, rutile, and synthetic rutile reached 280,000 tons, ahead of guidance, with ZIC production more than doubling to 60kt.

• Underlying mineral sands EBITDA was $218 million, with a margin of 39%, and group EBIT was $148 million.

• Operating cash flow was $115 million, down from H1 2024 due to lower receipts.

• Free cash outflow ranged from $192 million to $361 million, reflecting heavy project investment.

• Net debt ranged from $164 million to $502 million as of 30 June 2025.

Outlook and guidance

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

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

• Eneabba refinery capital expenditure guidance remains at AUD 1.7–1.8 billion, with $1 billion spent and committed.

• 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.