PLS Group reported a robust first half of FY26, with lithium production up 6% and a 40% jump in realised prices driving a 47% revenue increase. Underlying EBITDA soared 241%, underscoring operational efficiency and cost discipline.
- 6% increase in lithium concentrate production to 432.8kt
- 40% rise in realised lithium prices to US$965/t CIF China
- 47% revenue growth to $624 million
- 241% surge in underlying EBITDA to $253 million with 41% margin
- Strong balance sheet with $954 million cash and $1.6 billion total liquidity
Operational Momentum Drives Financial Strength
PLS Group has delivered a compelling performance in the first half of fiscal 2026, capitalising on favourable lithium market dynamics and operational efficiencies. Production of spodumene concentrate increased by 6% to 432.8 thousand tonnes, while sales volumes remained strong at 446 thousand tonnes. Most notably, the average realised price surged by 40% to US$965 per tonne, reflecting robust demand in key markets such as China.
This combination of higher volumes and pricing propelled revenue to $624 million, a 47% increase compared to the prior corresponding period. The company’s disciplined approach to cost management was evident as unit operating costs (FOB) declined 8% to $563 per tonne, underscoring ongoing operational improvements and economies of scale.
Profitability and Cash Flow Highlights
Underlying EBITDA skyrocketed by 241% to $253 million, lifting margins from 17% to an impressive 41%. This dramatic improvement signals PLS’s ability to generate strong cash flows even amid volatile commodity cycles. Net profit after tax turned positive at $33 million, a significant turnaround from a $69 million loss in the previous year, although this figure includes some non-cash impacts related to the company’s Mid-stream Demonstration Plant project and P-PLS investment.
Despite a modest $20 million decrease in cash during the half, largely due to working capital timing and customer refunds, PLS ended the period with a robust cash balance of $954 million and undrawn credit facilities of $625 million, providing ample liquidity of approximately $1.6 billion. Capital expenditure was substantial at $123 million, focused on infrastructure, mine development, and sustaining capital, positioning the company for future growth.
Strategic Positioning and Outlook
CEO Dale Henderson highlighted the company’s low-cost position and operational control across its Australian and Brazilian assets as key differentiators. The company’s 100% ownership of the Pilgangoora Operation, the world’s largest independent hard-rock lithium mine, and the Colina Lithium Project in Brazil, combined with strategic partnerships in South Korea, underpin its integrated lithium value chain.
Notably, the Board has elected not to declare an interim dividend, prioritising balance sheet strength and financial flexibility amid ongoing market uncertainties. This cautious capital management approach signals a focus on sustaining growth and navigating potential market fluctuations.
Looking ahead, PLS’s ability to maintain cost discipline, capitalise on lithium demand, and manage its liquidity will be critical as it seeks to deliver on full-year targets and potentially resume dividends, contingent on market conditions.
Bottom Line?
PLS’s strong H1 performance sets a solid foundation, but investors will watch closely for sustained lithium price support and free cash flow generation.
Questions in the middle?
- Will lithium prices remain elevated to support full-year earnings growth?
- How will PLS balance capital expenditure with shareholder returns going forward?
- What impact will non-cash project costs have on future profitability?