OM (OMH) H2 2024 earnings summary

Executive summary

• Achieved record alloy production exceeding 500,000 tonnes in FY2024, with 15 out of 16 furnaces operating and higher trading volumes despite margin compression in H2.

• Revenue grew 11% year-over-year to US$654.3 million, but net profit attributable to owners fell 49% to US$9.3 million, with EPS at 1.22 cents.

• EBITDA reached US$76.0 million, down from US$94.9 million in FY2023, reflecting squeezed margins.

• Final dividend declared at A$0.004 per share, the first in several years, payable 23 May 2025.

• Maintained operational excellence and cost efficiency despite declining ferroalloy prices and increased ore costs.

Financial highlights

• Revenue increased 11% to US$654.3 million; gross profit rose to US$113.2 million with a 17.3% margin.

• EBITDA for FY2024 was US$76.0 million; net profit was US$9.3 million.

• Cash from operations totaled US$83.3 million; year-end cash and equivalents were US$59.6 million.

• Loan repayments totaled US$66.1 million, reducing gearing ratio to 0.52.

• Net asset backing per ordinary security increased to US$0.5497.

Outlook and guidance

• FY2025 alloy production guidance: 440–490 ktpa, with FeSi at 170–190 kmt and Mn alloy at 270–300 kmt.

• Production expected to be slightly lower in FY2025 due to power supply maintenance.

• Focus on efficiency, operational optimization, and strategic market decisions amid volatility.

• Market normalization expected for manganese ore and alloys after recent price volatility.

• No explicit forward guidance provided in some reports as financials are being audited.