TerraCom (TER) H2 2025 earnings summary

Executive summary

• Revenue declined 13% year-over-year to $226.7 million, with net loss after tax of $43.4 million compared to a $25.0 million profit in FY2024.

• Coal sales volumes were impacted by weather and logistics, with total sales of 6.60 Mt (4.02 Mt equity sales).

• Blair Athol mine maintained strong production, while South African operations faced logistics bottlenecks and cost pressures.

• Progress was made on the Moorlands Project, including a partnership with Wintime Energy and infrastructure access agreements.

• Safety performance did not meet expectations, prompting renewed focus on safety culture and systems.

Financial highlights

• Revenue from ordinary activities fell 13% year-over-year to $226.7 million.

• Net loss after tax attributable to owners was $42.7 million, down from a $26.0 million profit in FY2024.

• Gross profit dropped to $4.4 million from $40.7 million in the prior year.

• Operating cash flow was $18.2 million, up from a $15.6 million outflow in FY2024.

• Dividends paid totaled $8.0 million (FY2024: $24.0 million); no dividends declared post year-end.

• Net tangible assets per share decreased to 14.94 cents (FY2024: 20.96 cents).

• Impairment charges of $22.1 million, including $13.5 million on exploration assets and $8.6 million on associates.

Outlook and guidance

• FY26 priorities include operational excellence, advancing Moorlands, and strengthening company culture.

• Blair Athol expected to remain a stable production base; Moorlands first coal targeted for 2026 pending approvals.

• Energy security and high-quality thermal coal demand expected to persist in core markets.