South32 (S32) H2 2025 earnings summary

Executive summary

• Achieved strong operational performance with 20% copper and 6% aluminum production growth year-over-year, supporting a 7% increase in underlying EBITDA to $1.93 billion and underlying earnings of $666 million.

• Streamlined portfolio by selling Illawarra Metallurgical Coal and agreeing to divest Cerro Matoso, focusing on high-margin, energy transition commodities.

• Maintained a strong balance sheet, improving net cash position by $885 million to $123 million, and returned $350 million to shareholders.

• Invested $517 million at Hermosa to support future base metals production.

Financial highlights

• Underlying EBITDA grew 7% year-over-year to $1.93 billion; underlying earnings increased to $666 million.

• Profit after tax rose to $213 million from a loss of $203 million in FY24.

• Operating free cash flow rose by $272 million year-over-year; free cash flow from operations was $258 million.

• Returned $350 million to shareholders through dividends and buybacks; announced a fully franked ordinary dividend of $117 million ($2.60/share) for the June 2025 half-year.

• Net cash position improved by $885 million, ending at $123 million.

Outlook and guidance

• Targeting continued positive operating momentum into FY26, with new bauxite mining areas at Worsley Alumina and expected 4% production increase in FY27.

• Alumina and aluminium refineries expected to operate near nameplate capacity in FY27; Brazil Aluminium ramp-up continues.

• FY26 capital expenditure guidance lowered by ~$100 million to $750 million, with focus on Worsley Alumina and Hermosa's Taylor project.

• Hillside Aluminum volumes to increase by 16% in FY26 and 3% in FY27; Mozal Aluminium likely to be placed on care and maintenance in March 2026 due to electricity supply uncertainty.

• Operating unit costs guidance reflects inflation, FX, and commodity input prices; cost efficiencies targeted across operations.