Kumba Iron Ore (KIO) H2 2025 earnings summary

Executive summary

• Delivered strong and resilient operational and financial performance in 2025, with disciplined execution and capital allocation amid macroeconomic volatility and logistical challenges.

• Maintained an industry-leading safety record, with nine consecutive fatality-free years at Sishen and three at Kolomela, supported by ongoing health and wellbeing initiatives.

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

• Advanced UHDMS technology project, reaching 37% completion and 90% engineering work, unlocking value and optimizing rail capacity.

Financial highlights

• Adjusted EBITDA rose 14% to R31.9 billion, with a margin of 46%, driven by higher iron ore prices and lower operating expenses.

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

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

• Return on capital employed improved to 46%, up 5 percentage points year-over-year.

• Average realized iron ore price was US$95/t, 12% above the benchmark.

Outlook and guidance

• 2026 production guidance: 31–33 Mt (22 Mt Sishen, 10 Mt Kolomela); sales guidance: 35–37 Mt, supported by finished stock.

• C1 unit cost guidance at ~$45/t; CapEx expected at R13.2–14.2 billion.

• Focus remains on operational excellence, cost efficiencies, logistics stability, and disciplined capital allocation.