Whitehaven Coal reported a 28% revenue decline to $2.48 billion and a net profit of $69 million for H1 FY26 amid softer coal prices and reduced equity sales. The company declared a fully franked 4 cent interim dividend and outlined ongoing development projects despite market headwinds.
- Revenue down 28% to $2,477 million
- Net profit after tax of $69 million, underlying net loss of $19 million
- Coal production up 3% to 20 million tonnes, cost per tonne slightly reduced
- Declared fully franked interim dividend of 4 cents per share
- Robust balance sheet with $710 million net debt and $1.46 billion liquidity
Financial Performance Amid Market Challenges
Whitehaven Coal Limited has released its half-year results for the period ending 31 December 2025, revealing a significant 28% drop in revenue to $2.48 billion compared to the previous corresponding period. Despite this, the company reported a net profit after tax of $69 million, down from $100 million a year earlier. Underlying net profit after tax swung to a loss of $19 million, reflecting the impact of lower coal prices and a reduced equity share following the partial sell-down of the Blackwater joint venture.
The company’s operational performance remained resilient, with managed run-of-mine coal production increasing by 3% to 20 million tonnes. Cost efficiency was maintained, with production costs per tonne slightly reduced to $135, down from $137 in the prior period. This operational strength helped offset the cyclical downturn in metallurgical and thermal coal prices, which were pressured by global trade uncertainties and a surplus of Chinese steel.
Dividend and Capital Management
In a move to reward shareholders amid challenging market conditions, Whitehaven declared a fully franked interim dividend of 4 cents per share, payable on 13 March 2026. This represents a reduction from the 9 cents per share paid in the prior half-year, consistent with the softer earnings environment. Additionally, the company plans to continue its share buy-back program, targeting up to $32 million over the next six months, signalling confidence in its capital position.
Whitehaven’s balance sheet remains robust, with net debt at $710 million and available liquidity of $1.46 billion, including $1.09 billion in cash and $367 million in undrawn credit facilities. The company continues to manage its financing obligations prudently, including deferred payments related to its recent acquisitions of the Daunia and Blackwater mines.
Operational Highlights and Development Projects
Operationally, both Queensland and New South Wales assets contributed to the production growth. Queensland operations saw a 4% increase in run-of-mine coal production, while New South Wales operations delivered a 3% increase. Notably, coal stocks increased significantly in Queensland due to timing differences between production and sales.
Whitehaven is progressing several development projects, including the Vickery full-scale project, Winchester South, and the Narrabri Stage 3 Extension. Environmental approvals are advancing, though the Winchester South project faces legal challenges with objections referred to the Queensland Land Court. The company remains committed to its capital allocation framework, balancing development with market conditions and acquisition obligations.
Market Outlook
Looking ahead, Whitehaven expressed cautious optimism. Metallurgical coal prices showed signs of recovery late in the half-year, supported by supply constraints and increased demand ahead of seasonal factors. Thermal coal markets remain subdued but benefit from the high quality and reliability of Whitehaven’s products. The company anticipates long-term structural supply deficits in both metallurgical and thermal coal markets, driven by underinvestment and resource depletion, which could support price improvements over time.
Despite ongoing global uncertainties and market volatility, Whitehaven’s disciplined approach to cost management, capital allocation, and operational execution positions it to navigate the current cycle and capitalise on future market opportunities.
Bottom Line?
Whitehaven’s half-year results underscore resilience amid market headwinds, but investors will watch closely for coal price recovery and legal outcomes.
Questions in the middle?
- How will ongoing legal proceedings impact Whitehaven’s operations and financials?
- What are the prospects for coal price recovery in the second half of FY26?
- How will the company balance capital expenditure on development projects with its acquisition payment obligations?