South32 (S32) H2 2026 earnings summary

Executive summary

• Achieved record financial results, with underlying EBITDA up 28% to $2.5B and underlying earnings up 55% to $1.0B, driven by base metals and commodity price tailwinds.

• Profit after tax rose to $1,087M, with free cash flow up 136% to $610M and a net cash position of $283M after returning $327M to shareholders.

• Major portfolio transformation underway, including the announced $5.6B sale of aluminium value chain assets to Alcoa, repositioning as a leading base metals-focused business.

• Safety remains a top priority, with enhanced procedures and ongoing investigations following a fatality at Worsley Alumina in March 2026.

Financial highlights

• Underlying EBITDA reached $2,462M at a 31% margin; profit after tax was $1,087M; underlying earnings $1,032M.

• Free cash flow increased to $610M; net cash position of $283M after $327M returned to shareholders.

• Fully franked ordinary dividend of 5.4 cents per share declared, totaling $242M for the June 2026 half.

• Revenue from continuing operations rose 1% to $5,816M; underlying revenue up 7% to $8,108M.

• Basic earnings per share rose 415% to 24.2 US cents; total ordinary dividends per share up 55% to 9.3 US cents.

Outlook and guidance

• Approved and pipeline growth projects in copper and zinc expected to increase production by 55%, with Sierra Gorda copper equivalent production forecast to rise 5% in FY27 and up to 12% in FY28.

• Sierra Gorda ore reserve increased by 61% to 1.1Bt, extending mine life to 2045; fourth grinding line to boost production by 30% from FY31.

• Cannington zinc equivalent production guidance set at 290kt for FY27 and FY28; Australia Manganese production guidance at 2,650–2,900kwmt.

• Hermosa’s Taylor project progressing on schedule, with first production expected H2 FY28 and a 33-year mine life.

• FY27 capital expenditure guidance for base metals and manganese to rise to $1,500M, mainly for Hermosa and Sierra Gorda expansions.