Whitehaven Coal Delivers $1.4B EBITDA Amid Market Headwinds, Eyes FY26 Growth

FY25 Performance Overview

Whitehaven Coal Limited has released its full-year results for FY25, showcasing a resilient operational and financial performance despite subdued global coal markets. The company reported an underlying EBITDA of $1.4 billion and an underlying net profit after tax (NPAT) of $319 million before significant items. Including gains from asset sell-downs and contingent payment remeasurements, statutory NPAT reached $649 million.

The year marked the first full consolidation of Queensland operations following the acquisition of Blackwater and Daunia mines, which significantly boosted production volumes and earnings. Managed run-of-mine (ROM) coal production climbed to 39.1 million tonnes, with equity sales of produced coal increasing 61% year-on-year to 26.5 million tonnes. Queensland operations accounted for $873 million of underlying EBITDA, a substantial increase from the prior year, while New South Wales operations contributed $539 million but faced higher unit costs.

Market Conditions and Pricing Resilience

Coal prices softened during FY25, with major indices for metallurgical and thermal coal declining 32% and 11% respectively. Despite this, Whitehaven achieved resilient average prices of A$232 per tonne for Queensland metallurgical coal and A$193 per tonne for New South Wales thermal coal. The company’s diversified portfolio and geographic footprint helped mitigate market volatility, supported by steady demand in key Asian markets such as Japan, India, and Malaysia.

Unit costs averaged $139 per tonne, outperforming guidance despite inflationary pressures and structural cost differences between Queensland and New South Wales operations. The company highlighted ongoing cost reduction initiatives targeting an additional $60–80 million in annual savings by the end of FY26.

Balance Sheet Strength and Capital Allocation

Whitehaven maintained a conservative balance sheet with net debt of $0.6 billion and available liquidity of A$1.58 billion at year-end. The company’s gearing ratio stood at 10%, well within its targeted range. Capital allocation remains disciplined, with a refreshed framework prioritizing shareholder returns, operational optimisation, and selective growth investments.

Shareholder returns were robust, with a fully franked final dividend of 6 cents per share declared, bringing total FY25 dividends to 15 cents per share. Additionally, the company executed share buy-backs totaling up to $48 million, aiming for a payout ratio of 40–60% of underlying NPAT through a balanced mix of dividends and buy-backs.

Outlook and FY26 Guidance

Looking ahead, Whitehaven’s FY26 guidance targets stable to slightly higher production volumes, with managed ROM coal production expected between 37.0 and 41.0 million tonnes. Cost guidance anticipates unit costs between $130 and $145 per tonne, reflecting ongoing efficiency programs and the integration of Queensland assets.

Capital expenditure is forecast at $340–440 million, reflecting a prudent approach at the bottom of the cycle and incorporating reduced Narrabri Stage 3 project costs following mine plan revisions. The company remains focused on safety, environmental performance, and delivering on acquisition synergies.

Sustainability and Community Engagement

Whitehaven continues to advance its sustainability agenda, with initiatives targeting Scope 1 and 2 emissions reductions and compliance with emerging climate-related reporting standards. The company reported positive community sentiment trends and increased engagement with Indigenous businesses and regional suppliers, reinforcing its social license to operate.

Overall, Whitehaven Coal’s FY25 results reflect a company well positioned to navigate market cycles, leveraging operational scale, cost discipline, and strategic capital management to create shareholder value.