South32 (S32) H1 2026 earnings summary

Executive summary

• Delivered strong H1 FY26 results with Underlying EBITDA up 9% to $1.1B and Underlying earnings up 16% to $435M, driven by higher base and precious metals prices and consistent operations.

• Profit after tax rose by $104M to $464M in H1 FY26.

• Announced a fully-franked interim dividend of 3.9 US cents/share ($175M) and increased capital management program by $100M to $2.6B.

• Portfolio streamlined with divestments of Cerro Matoso and Illawarra Metallurgical Coal, and transition of Mozal Aluminium to care and maintenance.

• Maintained focus on safety, reliability, and advancing key growth projects in copper, zinc, and silver.

Financial highlights

• Underlying EBITDA reached $1,107M, with a group operating margin of 28.2%.

• Underlying earnings grew to $435M year-over-year.

• Free cash flow was $57M after $338M in growth capital investment at Hermosa.

• Net debt stood at $25M at period end, with strong liquidity and investment grade credit ratings reaffirmed.

• Ordinary dividend of $175M declared for H1 FY26.

Outlook and guidance

• FY26 production and unit cost guidance unchanged across operated assets.

• Capital expenditure guidance for FY26 maintained at $1,400M, with Hermosa growth capex at $750M.

• Portfolio positioned for 20% copper equivalent production growth, driven by Hermosa, Sierra Gorda, and Taylor projects.

• Expect commodity price tailwinds and planned inventory drawdown at Mozal Aluminium to boost H2 cash generation.

• Capitalised exploration guidance for FY26 remains at $40M.