The PLS Group Ltd (ASX: PLS) share price is under the spotlight after the ASX lithium share reported significant profit growth in the HY26 result.
PLS Group is one of the world’s largest lithium miners with its Pilgangoora operations in Western Australia.
PLS Group FY26 half-year result
Here are some of the highlights from the ASX lithium share’s HY26 report:
- Sales volume grew 7% to 446kt
- Revenue grew 47% to $624 million
- Underlying EBITDA (EBITDA explained) increased 241% to $253 million
- Net profit after tax (NPAT) soared 147% to $33 million
- Cash balance declined 18% to $954 million
What happened?
PLS Group benefited from a huge increase in the lithium price during the period.
The ASX lithium share said that its realised (sold) price for its lithium increased by 40% to US$965 per tonne, which was the key factor for the 47% jump of revenue.
PLS Group’s operations also performed strongly with a 6% increase in production volume to 432.8kt, helping the operating costs per tonne decrease.
The ASX lithium share reported that unit operating costs (FOB – excluding freight and royalties) declined 8% to A$563 per tonne, while the unit operating cost including freight and royalties fell 6% to A$682 per tonne.
That combination of lower costs, stronger production and a stronger lithium price led to the big jump in the net profit.
The net profit figure included $16 million of mid-stream demonstration plant project costs and $39 million of non-cash P-PLS (POSCO Pilbara Lithium Solution – a lithium hydroxide chemical facility) investment impacts.
The cash decreased reflected customer refunds from the prior year and the timing of pricing settlements.
It also announced that PLS Group and Calix Ltd (ASX: CXL) have agreed that the ASX lithium share will acquire Calix’s stake in the existing demonstration plant joint venture. PLS Group will pay A$11.4 million and Calix will grant a perpetual royalty-free licence for its technology and IP. Both businesses can licence the Calix IP to third parties and share royalties from licensing based on a revised split of 80% to PLS Group and 20% to Calix.
Management commentary
The PLS Managing Director and CEO Dale Henderson said:
These outcomes reflect consistent execution of our through-the-cycle strategy – aligning production with market conditions while preserving balance sheet strength and maintaining full operational control. Our scale and 100% ownership across our Australian and Brazilian assets provide structural flexibility and clear differentiation within the sector.
Consistent with our capital allocation framework and disciplined approach to capital management, the Board has determined not to declare an interim dividend for H1 FY26, prioritising financial flexibility through the cycle.
Final thoughts on the PLS Group share price
It’s good to see that the company has returned to positive profit generation and the second half of FY26 also looks very promising for making a positive bottom line.
PLS Group has benefited from the big increase in lithium prices, so we’ll have to see what happens next. It’s possible the lithium price could continue rising from here and that could further excite the market if there continues to be strong lithium demand from China and elsewhere.
However, at the pre-open price, the PLS Group share price was up more than 120% over the past year. It’s not the bargain it was during the first half of 2025, so I wouldn’t want to commit too much investing in the business at this valuation.
Instead, there are other ASX growth shares that I’d focus on first which are less reliant on Chinese demand for strong profits.
