Kumba Iron Ore (KIO) H2 2025 earnings summary

Executive summary

• Achieved resilient operational and financial performance in 2025, with consistent output, improved realised prices, and disciplined capital allocation despite macroeconomic volatility.

• Maintained a strong safety record, with nine consecutive fatality-free years at Sishen and three at Kolomela, and ongoing health and wellbeing initiatives.

• Delivered R58.0 billion in stakeholder value, including dividends, social investment, and local procurement.

• Progressed UHDMS technology project, enhancing value extraction and optimizing logistics.

Financial highlights

• Adjusted EBITDA rose 14% year-over-year to R31.9 billion, with a 46% margin, driven by higher iron ore prices and cost discipline.

• Headline earnings per share increased to R45.97; total dividend per share for 2025 was R32.03 at a 70% payout ratio.

• Return on capital employed improved to 46%, up five percentage points year-over-year.

• Attributable free cash flow was R12.0 billion; closing net cash position at R14.9 billion.

• EBITDA cash conversion reached 102%.

Outlook and guidance

• 2026 production guidance: 31–33 million tonnes; sales: 35–37 million tonnes, supported by finished stock.

• C1 unit cost guidance at $45/tonne, unchanged in real terms; increase due to exchange rate translation.

• Capital expenditure for 2026 expected between R13.2 billion and R14.2 billion, mainly for UHDMS and HME replacement.

• Focus on operational excellence, cost efficiencies, logistics stability, and value-accretive life extension projects.