Iluka Resources (ILU) Q4 2025 TU earnings summary

Executive summary

• Full year 2025 zircon/rutile/synthetic rutile (Z/R/SR) production reached 559kt, exceeding guidance due to higher zircon-in-concentrate (ZIC) output from optimized processing at multiple facilities.

• Mineral sands revenue for 2025 was $976 million, with Q4 revenue at $276 million; trade receivables stood at $267 million at year-end.

• A comprehensive cost review in Q4 2025 led to a reduction of approximately 120 roles, targeting $36 million in savings for 2026.

Financial highlights

• Full year 2025 Z/R/SR production was 559kt, up 12.7% year-over-year; sales were 475kt, nearly flat from 2024.

• Mineral sands revenue declined 13.5% year-over-year to $976 million.

• Unit cash costs of production for Z/R/SR were $1,054/t, 18.8% lower than 2024, reflecting higher ZIC output.

• Net debt at 31 December 2025 was $473 million for mineral sands and $584 million for rare earths.

• Operating cash flow for 2025 was $61 million, down from $252 million in 2024.

Outlook and guidance

• 2026 production assumes SR2 and Cataby remain idle, with flexibility to restart SR2 if market conditions improve.

• Balranald production to ramp up through H1 2026; lower cash costs expected due to idling of certain operations.

• Contracted 35kt of zircon sand sales for Q1 2026 at Q4 2025 prices; customers remain cautious with lean inventories.