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 to $464M, with improved safety performance and no fatalities.

• Announced a fully franked interim dividend of $175M and increased capital management program by $100M to $2.6B, with $209M returned to shareholders.

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

• Advanced key growth projects, including Taylor, Hermosa, and Sierra Gorda, with exploration success at Peake and Catabela Northeast.

Financial highlights

• Underlying EBITDA reached $1.1B, with a group operating margin of 28.2% and underlying earnings of $435M.

• Profit after tax attributable to members rose 29% to $464M.

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

• Free cash flow totaled $57M, with group free cash flow from operations (excl. EAls) an outflow of $183M due to higher capex and working capital build.

• Ordinary dividend of 3.9 US cents/share ($175M) declared.

Outlook and guidance

• FY26 production and operating unit cost guidance remain unchanged across all operated assets, except Brazil Aluminium, which was revised down due to operational disruptions.

• FY26 Group capital expenditure guidance maintained at $1,400M, with Hermosa growth capex at $750M and capitalised exploration at $40M.

• Growth profile targets a 20% increase in group copper equivalent production, driven by Hermosa, Sierra Gorda, and Taylor projects.

• Expects final EIS for Hermosa in H2 FY26 and full federal permits for Taylor, Clark, and Peak in H1 FY27.

• Anticipates continued cash generation in the second half, supported by commodity price tailwinds and planned inventory drawdown at Mozal.