The Pilbara Minerals Ltd (ASX: PLS) share price is in focus after delivering its FY25 result.
Pilbara Minerals is one of the largest lithium miners in Australia.
Pilbara Minerals FY25 result
Here are some of the highlights from the FY25 report:
- Revenue fell 39% to $769 million
- Underlying EBITDA (EBITDA explained) declined 83% to $97 million
- Underlying net profit sank 125% to a loss of $88 million
- Statutory net profit after tax (NPAT) declined 176% to a loss of $196 million
- Operating cashflow declined 63% to $192 million
- Cash balance fell 40% to $1 billion
Operationally, the business saw its production increase by 4% to 754.6kt and its sales rose by 7% to 760.1kt.
But, a key driver of the result was the 43% decline in the realised price of those sales to US$672 per tonne. Significantly less revenue for each tonne for its resources is clearly a headwind for profitability.
But, there was a positive from the unit cost per tonne, which declined from A$654 per tonne in FY24 to A$627 per tonne. This is expected to reduce to A$580 per tonne in FY26.
Comments on the lithium price
While three has been pain for the lithium price, Pilbara Minerals has seen a recovery in the last two months back to the best price it has seen in 2025 of around US$900 per tonne.
The lithium miner said that lithium pricing remains “prone to sharp swings, amplified by short-dated contracts, thin liquidity and momentum trading.”
Occasionally, the business carries out an on-the-spot sale rather than a longer contract – it recently saw a sale in August of above SC6 US$1,050 per tonne CIF China, which was around 10% above the market average.
Pilbara Minerals noted that recent pricing movements have been driven by “compliance reviews across major lithium producing regions in China.”
Project progress
The company said that its Pilgangoora expansion projects of P680 and P1000 are now complete and Pilbara Minerals will focus on continuous improvement and operating cost reduction.
The ASX lithium share also said that it has completed the acquisition of Latin Resources, with work now underway to increase the Colina Project’s value through further exploration and ‘study optimisation’ activities.
Pilbara Minerals said that there’s a focus on capital discipline and cost reduction through the implementation of the P850 operating model and an ongoing cost review program has delivered a net cashflow improvement of approximately $230 million in FY25.
Final thoughts on the Pilbara Minerals share price
In FY26, the company said it will focus on further cost reductions and efficiency gains through its expanded ‘Cost Smart’ program and embedding “continuous improvement across all areas of the business.”
If the lithium price continues rising, this could still be a good time to invest, despite the rise of more than 60% in the last two months because the lithium price is still much lower than it was a few years ago.
It’s not the sort of business I’d want to buy with this much uncertainty.
