Liontown posts first annual profit in FY26

Liontown Resources posted its first annual net profit in FY26, reporting a net profit after tax of A$93 million after a loss in the prior year. The company also reported an underlying net profit after tax of A$14 million, reversing an underlying loss of A$140 million in FY25. Management characterised FY26 as a turnaround year, supported by improved financial performance across key metrics.

Revenue for FY26 rose to A$639 million from A$298 million in the prior year, reflecting higher production and sales. Underlying EBITDA increased to A$147 million from A$20 million, signalling a substantial improvement in operating profitability. Operating cash flow strengthened markedly to A$182 million from A$1 million year-on-year, underscoring better cash generation from the core business.

The company’s results were influenced by higher realised concentrate prices over the year, though reported estimates of the percentage increase differ between sources. Despite this variation, the financial statements show that stronger pricing, combined with higher volumes, contributed to the move from loss to profit at both reported and underlying levels.

Liontown did not declare a dividend for FY26. Management indicated that available cash will be directed toward reinvestment in the business rather than immediate shareholder distributions. This approach aligns with the company’s focus on advancing its key growth project at Kathleen Valley.

The decision reflects the capital requirements associated with transitioning operations and funding future expansion. By prioritising reinvestment over dividends, Liontown aims to support ongoing project development and maintain financial flexibility as it builds on its first year of profitability.

Liontown confirmed that the underground ramp-up at its Kathleen Valley operation remains on track. The company is targeting a 2.8 million tonnes-per-annum run rate by the end of FY27 as the operation transitions to fully underground mining. This timetable provides a multi-year growth pathway tied directly to production performance at the site.

In addition to the ramp-up, a final investment decision on a planned expansion of Kathleen Valley is scheduled for next month. This upcoming decision is a key milestone for the company’s longer-term growth profile. The combination of the ramp-up schedule and the pending expansion decision positions Kathleen Valley as the central driver of Liontown’s future operating and financial outcomes.