TerraCom (TER) H1 2025 earnings summary

Executive summary

• TerraCom Limited reported a profit after tax of $2.887 million for the half-year ended 31 December 2024, down 91% year-over-year from $31.458 million.

• Revenue from operations was $111.306 million, a 21% decrease compared to the same period last year.

• EBITDA for the period was $15.190 million, down 69% year-over-year.

• Dividends of $8.010 million were paid during the half-year, compared to $24.030 million in the prior period.

• The company operates coal mines in Queensland, Australia and South Africa, with no significant changes in principal activities.

Financial highlights

• Net cash from operating activities was $8.059 million, a turnaround from an outflow of $3.908 million in the prior period.

• Cash and cash equivalents increased to $10.934 million from $8.351 million at 30 June 2024.

• Restricted cash rose to $61.254 million from $58.219 million.

• Trade and other payables decreased 13% to $28.322 million.

• Diluted earnings per share fell to 0.39 cents from 3.96 cents year-over-year.

Outlook and guidance

• Directors expect the company to remain cash flow positive for at least twelve months from the date of signing, based on current market conditions and reasonable sensitivities.

• The company continues to focus on operational efficiency and maintaining strong customer relationships, with all Blair Athol coal sales for the March quarter secured.