The Liontown Ltd (ASX: LTR) share price is in focus after the ASX lithium share reported its FY26 half-year result.
Liontown is one of the ASX’s lithium producing miners. It has two major lithium deposits in Western Australia and wants to expand its portfolio through exploration, partnerships and acquisitions.
Liontown HY26 result
Here are some of the main highlights from the result for the six months to 31 December 2025:
- Revenue increased by 107% to $207.5 million
- Underlying EBITDA (EBITDA explained) loss of $7.7 million
- Statutory loss of $184 million
- Cash balance of $390.5 million
What happened?
The company noted that its revenue jumped so much because of a 106% increase sales volumes to 189,596 dry metric tonnes (dmt) as Kathleen Valley ramped up underground production.
Liontown said that its average realised price was US$888 per dmt, with Liontown’s first Metalshub spot auction in November 2025 clearing at US$1,254 per dmt for shipment in January.
The ASX lithium share said that unit operating costs were A$985 per dmt, with an all-in sustaining cost of A$1,179 per dmt. Pleasingly, both cost metrics declined through the half.
The statutory net loss was impacted by a $104.4 million charge on the LGES convertible note derivative, primarily driven by the Liontown share price rise from $0.70 to $1.575 over the period. That charge will not be repeated after the conversion of the LGES notes to equity in February 2026.
Liontown’s underlying net loss was $88.7 million, which included $91.1 million of depreciation and $21.2 million of net finance costs. This was at a time when the production is still increasing.
Ford debt facility
Liontown noted that the Ford debt facility was amended to defer repayments by 12 months to September 2026.
Management comments
The Liontown CEO and Managing Director Tony Ottaviano said:
Kathleen Valley is now a 100% underground operation. We have delivered a one million tonne per annum underground run-rate on schedule, sold 190,000 tonnes of concentrate across ten shipments, and more than doubled revenue period to period. The underground ramp-up is on track and we expect the second half to be materially stronger as volumes, recoveries, and pricing all continue to improve.
The reported loss of $(184) million includes a $(104) million non-cash accounting charge relating to the LGES convertible note which is primarily a consequence of our share price more than doubling during the half. An estimated $58 million gain is expected to be recognised upon conversion into equity and will be reflected in our full year results.
The balance sheet has been reset. Pro forma gearing (excluding leases) has dropped from 48% to 22% and we had $390 million in cash at 31 December 2025. This provides us with a strong financial foundation to complete the ramp-up, progress the 4 Mtpa expansion study and continue to grow the Company to its full potential.
We are one of a small number of producers globally that can bring additional lithium tonnes to market quickly through brownfield expansion of an operating asset. The expansion study is underway, and we are advancing critical path procurement now.
Final thoughts on the Liontown share price
The company said that with FY26 guidance unchanged and lithium prices strengthening in 2026, Liontown is expecting cash generation to improve through the second half of FY26.
The Liontown share price had risen by more than 160% over the past year, at the pre-open price. I wouldn’t call it great value today, but it is one way to benefit from rising lithium prices.
For now, there are other ASX growth shares I’d rather buy that have recently been sold off.
