Iluka Resources (ILU) H1 2026 earnings summary

Executive summary

• Strong cash flow generation in H1 2026, driven by improved zircon pricing, inventory drawdown, and operational discipline.

• Mineral sands revenue for H1 2026 was $433 million, down 22% year-over-year, with underlying Group EBITDA at $41 million, an 81% decrease compared to H1 2025.

• Major strategic projects advanced: Balranald mine commissioned and ramping up, Eneabba rare earths refinery construction reached 60% completion, and first rare earths offtake agreement executed.

• Interim dividend of 3 cents per share declared, fully franked, up 50% year-over-year.

Financial highlights

• Mineral sands revenue of $433 million, down 22% year-over-year; underlying mineral sands EBITDA of $41 million, down 81%.

• Operating cash flow improved to $247 million, with free cash flow at $200 million for H1 2026.

• Mineral sands net debt reduced to $273 million at 30 June 2026, from $473 million at 31 Dec 2025.

• Group EBIT was negative $10 million, compared to $148 million in H1 2025; NPAT was a loss of $24 million.

• Rare earths segment had net non-recourse debt of $877 million, with $265 million capex in H1 2026.

Outlook and guidance

• Zircon prices expected to remain stable at Q3 levels for the rest of the year, barring major supply/demand changes.

• Synthetic rutile kilns remain idle; restart subject to market conditions.

• Eneabba refinery commissioning targeted for 2027, with construction progressing on budget and schedule.

• Full year Mineral Sands CapEx expected at AUD 115 million; 2026 cash cost of production guided at AUD 380 million.

• Positioned to respond to demand recovery in pigment and housing markets.