The Mineral Resources Ltd (ASX: MIN) share price is up 1% after the ASX mining share announced its FY26 half-year result.
Mineral Resources produces both iron ore and lithium, and it also has a mining services outlook.
Mineral Resources HY26 result
Here are some of the main highlights for the first six months of FY26:
- Revenue rose 33% to $3.1 billion
- Underlying EBITDA (EBITDA explained) soared 286% to $1.2 billion
- Underlying net profit after tax (NPAT) surged 275% to $343 million
- Reported NPAT jumped 171% to $573 million
What happened?
There was a significant improvement of profitability across the business.
Mining services underlying EBITDA rose 29% to $488 million. Iron ore underlying EBITDA increased $582 million from a loss of $9 million to positive $573 million. Lithium underlying EBITDA improved $182 million to $167 million.
Mineral Resources said that Onslow Iron is now a proven, cash-generative operation. It has reached its nameplate capacity of 35mt per year, thanks to the help of the mining services business. Its production came at a FOB cost of $52 per wet metric tonne (wmt)
The mining services business continues to deliver superior performance across its diverse client base, according to Mineral Resources.
The lithium assets are proving to be “world class” in an improving commodity market – it has been challenging for the company. With the lithium price having recovered “strongly”, it’s “well positioned to capture the upside as market fundamentals continue to improve”.
The business decided to take the “prudent decision” not to declare an interim dividend as it remains focused on fortifying the balance sheet.
Outlook for the Mineral Resources share price
The mining services business is expected to deliver record production volume of between 305mt to 325mt, representing 12.5% growth and close to $1 billion of annualised EBITDA.
Mineral Resources said that the long-term outlook for its mining services remains “strong” and it’s focused on driving growth across a range of clients.
Onslow Iron will “underpin” ongoing deleveraging of the balance sheet and help both the iron ore and mining services earnings. The project is on track to be at the low end of its $54 per wmt to $59 per wmt guidance range for costs.
The lithium business is poised to see an increase in earnings after a period of optimisation and reducing costs, combined with improving lithium demand and prices. It’s likely to see increased lithium production over the next year.
After rising more than 110% in the past year, the Mineral Resource share price is certainly not as cheap as it was.
The business is delivering good performance across its divisions and this should mean a good result in the second half of FY26. I think it’s an interesting business, though I’m not jumping to buy it today. If I were a shareholder, I’d be happy to see the recovery the business has gone through within the last year.
