Yancoal Australia (YAL) H2 2025 earnings summary

Executive summary

• Achieved record ROM coal production of 67.0 million tons and attributable salable coal production of 38.6 million tons, both up 5%-7% year-over-year and at the upper end of guidance.

• Revenue reached $5.95 billion, with operating EBITDA of $1,437 million at a 24% margin, and profit after tax of $440 million.

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

• Maintained a strong balance sheet with $2.1 billion in cash and no external debt or interest-bearing loans.

• 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 $5.95 billion due to lower realized coal prices.

• Operating EBITDA fell 44% to $1,437 million, and profit after tax dropped 64% to $440 million.

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

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

• Total dividends paid in 2025 amounted to $769 million, with a 55% payout ratio.

Outlook and guidance

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

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

• Capital expenditure guidance: $750–900 million, with majority for sustaining capital and some deferred 2025 spend.

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

• Market outlook expects stable demand for high-quality thermal coal in North Asia and a relatively flat coal price environment barring major policy changes in Indonesia.