South32 (S32) H2 2026 earnings summary

Executive summary

• Underlying EBITDA rose 28% to $2.5B and underlying earnings increased 55% to $1.0B year-over-year, driven by strong base metals performance and commodity price tailwinds.

• Profit after tax attributable to members rose 410% to $1,087M, with free cash flow up 136% to $610M.

• Net cash position of $283M after $327M returned to shareholders and $711M invested in Hermosa.

• Announced sale of aluminium value chain to Alcoa for up to $5.6B, repositioning as a focused base metals company.

• Safety performance improved, but a fatality at Worsley Alumina led to enhanced procedures and ongoing investigations.

Financial highlights

• Underlying EBITDA margin improved to 31.0%, with group operating margin at 31% and copper at 66%.

• Operating cash flow increased by $352M to $610M, after $700M+ investment in Hermosa.

• Profit after tax rose to $1,087M; underlying EBIT up 42% to $1,717M.

• Fully franked ordinary dividend of $0.054 per share ($242M) declared for June 2026 half; total returns to shareholders $327M.

• Growth capital expenditure totaled $711M, mainly at Hermosa.

Outlook and guidance

• Approved copper and zinc projects expected to increase production by 55%; Sierra Gorda copper equivalent production to rise 5% in FY27 and 12% in FY28.

• Cannington zinc equivalent production guidance at 290kt for FY27 and FY28.

• Hermosa Taylor project progressing, with first production expected H2 FY28 and $1B in FY27 growth capex.

• Australia Manganese guidance reflects water management and weather challenges, with ongoing permitting and infrastructure work.

• Group cost base expected to remain under pressure from external factors, but cost efficiencies and portfolio changes to mitigate impacts.