New Hope (NHC) H2 2025 earnings summary

Executive summary

• Achieved significant increases in saleable coal production (up 18% to 10.7Mt) and improved safety metrics, with TRIFA/TRIFR down 35% to 3.22, despite wet weather and logistics constraints.

• Delivered 16.4Mt run-of-mine coal (+33%), 10.5Mt coal sales (+21%), and maintained resilience amid lower coal prices and operational challenges.

• Continued focus on organic growth, ramping up New Acland and Maxwell Underground mines, and sustaining Bengalla production.

• Increased equity interest in Malabar Resources to 22.98%, expanding metallurgical coal exposure.

• Strong shareholder returns through dividends, share buy-backs, and introduction of a Dividend Reinvestment Plan.

Financial highlights

• Underlying EBITDA was $766M (down 11% year-over-year); statutory net profit after tax was $439M (down 8%), both impacted by lower realized coal prices.

• Operating cash flow increased to $571M, with available cash at $707.3M.

• Average sales price (including hedging) was $161/ton, with an underlying margin of $64/ton.

• Fully franked final dividend of $0.15/share declared, with total FY25 dividends between $0.34 and $0.41/share.

• $347M returned to shareholders via dividends, representing a 12% gross dividend yield.

Outlook and guidance

• Focus remains on organic growth, ramping up New Acland and Maxwell Underground, and sustaining Bengalla production.

• FY26 guidance: ROM coal production 15.9–17.5Mt, saleable coal 10.6–11.6Mt, coal sales 10.4–11.5Mt.

• Industry outlook remains strong, with potential supply shortfall and attractive pricing expected due to underinvestment and asset aging.

• Long-term demand for Australian thermal coal expected to remain due to global power needs and supply constraints.

• Pathway established for New Acland Mine to reach ~5Mtpa production following legal resolution.