Yancoal Australia (YAL) H2 2025 earnings summary

Executive summary

• Achieved record ROM coal production of 67 million tons and attributable salable coal production of 38.6 million tons, both at the upper end of guidance.

• Revenue reached nearly AUD 6 billion, with operating EBITDA of over AUD 1.4 billion at a 24% margin, and profit after tax of AUD 440 million.

• Cash operating costs reduced to AUD 92/ton, the lowest in four years, despite inflation and weather challenges.

• Maintained a strong balance sheet with AUD 2.1 billion in cash and no external debt at year-end.

• Maintained a strong safety record with a 12-month rolling TRIFR of 6.14, below the industry average.

Financial highlights

• Revenue declined 13% year-over-year to AUD 5.95 billion due to lower realized coal prices.

• Operating EBITDA was AUD 1.44 billion, reflecting a 44% decrease in operating cash inflows.

• Realized coal price averaged AUD 146/ton, down 17% from 2024; thermal coal price was AUD 136/ton (down 15%), and met coal price was AUD 203/ton (down 26%).

• Cash operating margin was AUD 39/ton after royalties.

• Final fully franked dividend of AUD 0.1220/share (AUD 161 million), with a total payout ratio of 55%.

Outlook and guidance

• 2026 attributable salable production guidance: 36.5–40.5 million tons.

• Cash operating cost guidance: AUD 90–98/ton, allowing for inflationary pressures.

• Capital expenditure guidance: AUD 750–900 million, with majority for sustaining capital.

• Q1 2026 expected to be the lowest production quarter, with higher output in subsequent quarters.

• Focus remains on production, cost control, and balanced capital allocation.