The PLS Group Ltd (ASX: PLS) share price is under the spotlight after the ASX lithium share announced its FY26 result.
PLS Group is one of the world’s largest lithium miners.
FY26 result
The company announced its result for the 12 months to 30 June 2026:
- Production increased 17% to 879.5kt
- Sold price grew 121% to US$1,488
- Revenue rose 152% to $1.9 billion
- Underlying EBITDA (EBITDA explained) soared 1,067% to $1.1 billion
- Cash margin from operations soared 608% to $1.36 billion
- Net profit after tax (NPAT) jumped 369% to $526 million
- Cash balance jumped 135% to $2.3 billion
- Dividend declared of $0.05
What drove these numbers?
The key driver of the large financial growth was the significant increase in the lithium price over the year.
PLS Group also noted that its unit operating cost (FOB) improved by 9% to $569 per tonne, reflecting higher volumes (it can spread its costs across more tonnage) and ongoing operational improvements.
The ASX lithium share said that after a sustained increase in the lithium commodity price and improved market sentiment, it has shifted from defensive positioning to a focus on growth. This has resulted in the decision to restart the Ngungaju processing plant and an update to the study timelines for the P2000 and Colina projects.
PLS Group said that the P2000 and Colina project studies have progressed, while the P2000 pre-FID investment of $175 million capital expenditure was approved in June.
The dividend that the ASX mining share has declared represents a distribution of around $161 million to shareholders, so it doesn’t represent a significant proportion of FY26’s profit.
The cash balance partly saw such a large increase because it includes proceeds from its “inaugural” US$600 million bond.
PLS Group did spend $328 million on capital expenditure during the year, though this represented a decline of 42% compared to FY25.
Outlook for the PLS Group share price
The ASX lithium share says that lithium demand is set to triple by 2040, particularly thanks to growth from electric vehicles.
Chinese battery production is growing at a strong double-digit rate each year, but the country’s chemicals inventory has significantly reduced over the past 12 months.
The miner suggested that lengthening development timelines of lithium projects are expected to constrain the industry’s ability to meet demand.
In FY27, the company expects to produce between 1,030kt to 1,100kt – this would be growth of at least 17%. The unit operating cost (FOB) is expected to be between A$575 to A$625 per tonne, which would represent a rise of between 1% to 9.8%.
I think PLS Group has a promising future with the strong uptake of electric vehicles. I’d be very happy with this update if I were a shareholder.
However, with the PLS Group share price up more than 130% in the past year, I don’t think it’s an opportune time to invest unless there was more clarity on where the lithium price will go in the longer-term. I think there are other ASX growth shares with less optimism already baked into the valuation.
