OM Holdings returned to profit in the first half of 2026 despite a 14% revenue decline, with EBITDA rising sharply and debt reduced through repayments and an asset sale. The result was supported by a US$145.1 million investing cash inflow from the disposal of its Tshipi mine interest, while operating cash flow remained negative.
- US$26.2m profit attributable to owners, versus a US$9.5m loss
- EBITDA increased to US$87.0m from US$19.1m
- Revenue fell 14% to US$265.2m on lower sales volumes
- US$145.1m investing inflow followed the Tshipi mine disposal
- FY2026 guidance retained at 70,000-80,000 tonnes of FeSi and 160,000-170,000 tonnes of manganese alloys
Profit Returns Despite Lower Revenue
OM Holdings Limited (ASX:OMH) has swung back into the black, reporting US$26.2 million in profit attributable to owners for the six months to June 2026, compared with a US$9.5 million loss a year earlier. The turnaround came even as revenue fell 14% to US$265.2 million, reflecting lower sales volumes of manganese ore and ferrosilicon.
EBITDA rose to US$87.0 million from US$19.1 million in the prior corresponding period, while earnings per share increased to 3.44 US cents from a loss of 1.25 US cents. OMH said average selling prices were higher across all products, helping offset the volume decline, although the presentation defines EBITDA on a company basis and notes that the measure is not uniformly comparable across businesses.
Tshipi Disposal Drives Cash Inflow
The half-year numbers were also shaped by portfolio activity. OMH recorded US$145.1 million of investing cash inflow from selling its 13% effective interest in the Tshipi manganese mine, and its associates segment made a US$71.6 million EBITDA contribution linked to the sale. The mining segment remains under care and maintenance, as it has since January 2022.
That asset sale helped fund further balance-sheet repair. Total debt declined through the early redemption of private bonds, scheduled term-loan repayments and voluntary repayments of revolving credit facilities. OMH also reported US$38.2 million in cash and cash equivalents at the end of June, although the gearing ratio shown in the presentation remained 0.40.
Production Guidance Holds Firm
Underlying operating cash flow was less comfortable than the headline profit. Operations used US$72.4 million during the half, which OMH attributed to working-capital movements, while financing activities absorbed a further US$47.6 million. The cash profile therefore relies heavily on the Tshipi disposal proceeds and continued debt reduction rather than operating inflows alone.
At its Sarawak smelter complex, OMH produced 80,194 tonnes of ferrosilicon and 168,624 tonnes of manganese alloys in the first half. Fourteen furnaces were operating, comprising six ferrosilicon furnaces and eight manganese-alloy furnaces, with two additional ferrosilicon furnaces idled. Full-year guidance remains 70,000 to 80,000 tonnes of ferrosilicon and 160,000 to 170,000 tonnes of manganese alloys.
Market Prices and Mine Optionality
OMH said average first-half ferrosilicon prices were US$1,198 per tonne, up 6.2% year on year, while silicomanganese averaged US$933 per tonne, down 2.0%. It described the ferrosilicon market as showing a slight recovery, while silicomanganese prices rose early in the period before correcting in the second quarter.
The manganese mine remains in care and maintenance while the group conducts a restart optionality study covering potential technical, operational and economic pathways. That leaves the smelting business, price realisation and working-capital discipline as the more immediate tests of whether the first-half earnings improvement can be sustained after the one-off significance of the Tshipi disposal fades.
Bottom Line?
The profit recovery is substantial, but the next test is whether stronger margins and production can generate operating cash without another major asset sale.
Questions in the middle?
- Can improved selling prices offset lower volumes through the second half?
- How much of the US$87.0 million EBITDA reflects repeatable smelting performance rather than the Tshipi disposal?
- Will the manganese mine restart study produce an economically viable pathway from care and maintenance?