The PLS Group Ltd (ASX: PLS) share price jumped 21% in February 2026, outperforming the S&P/ASX 200 Index (ASX: XJO).
PLS Group is one of the world’s largest lithium shares. It’s one of the most direct ways to invest a pure lithium businesses.
What happened in February?
The ASX lithium miner reported a highly-anticipated FY26 half-year result during the month which showed its financials are going in the right direction.
The volume of lithium sold increased by 7% to 446kt, while the sold price of its lithium jumped 40% to US$965 per tonne.
Impressively, the unit operating costs (CIF) fell by 6% to A$682 per tonne, thanks to both a focus on operational efficiencies and increased sales volume.
The stronger supports for income flowed through to its revenue, leading to a 47% jump to A$624 million. Underlying EBITDA (EBITDA explained) increased 241% to $253 million and the net profit jumped 147% to $33 million.
The business finished the half-year period of $954 million of cash.
PLS Group didn’t declare an interim dividend, giving priority to preserving balance sheet strength and financial flexibility through the recent commodity weakness.
However, the business did report that, subject to sustained supportive lithium pricing and continuing free cash flow generation, the PLS Group board will consider a dividend at the time of its FY26 full-year result. To me, that implies improving confidence in the outlook and financial strength of the business. No wonder the PLS Group share price increased.
The lithium business also said that in light of sustained improvement in market fundamentals and significant demand from customers, it approved the restart of the Ngungaju plant to produce around 200kt per year.
It’s also reviewing its growth studies timelines and sequencing, including the P2000 Pilgangoora expansion feasibility study, which is expected in the December 2026 quarter.
Pilbara Minerals said:
PLS’ positioning through the lithium market downcycle has been disciplined, deliberate and strategic, ensuring the company preserved operating capability, delivered against guidance and retained balance sheet strength and operational flexibility through a period of heightened volatility.
As market fundamentals improve, that discipline now enables PLS to capitalise on its competitive advantage and deliver production growth from a position of strength.
The Company’s low-cost operating base, established operating capability and financial resilience are direct outcomes of disciplined decisions made in recent years which positions PLS well to reassess its upstream growth portfolio following sustained appreciation in spodumene pricing and improving market conditions.
Final thoughts on the PLS Group share price
The ASX lithium share is doing the right things to protect its value during weaker times and maximise its earnings during better times.
With the PLS Group share price up more than 150% in the past year, it has recovered back to close to its all-time peak seen a few years ago, even though the lithium price isn’t as high as it was.
This doesn’t seem like a great time to invest in this volatile business after such a strong run. I’d be very happy as a shareholder because of how earnings are rebounding. I think the lithium price would need to continue rising to be a great buy today.
For now, I’d look at other ASX growth shares which have sold off heavily.
