The New Hope Corporation Ltd (ASX: NHC) share price is up 3% after reporting a difficult FY26 result.
New Hope is one of the largest coal miners in Australia with its Bengalla and New Acland mines,.
FY26 result
Here are some of the highlights for the 12 months to 31 July 2026:
- Underlying EBITDA (EBITDA explained) declined by 33% to $514.3 million
- Underlying profit before tax down by 54% to $255.8 million
- Statutory net profit sank 63% to $161 million
- Annual dividend per share up 17.6% to $0.40
What happened in the result?
New Hope said that it had a solid full year of operating performance. Saleable coal production grew 7.6% to 11.5mt. However, its free on board (FOB) cash cost (excluding royalties) grew by 7.9% to $81.3 per tonne.
The ASX coal share said that its realised price (including hedging) declined by 10% to $145.2 per tonne.
New Hope explained that the decrease in the net profit after tax was due to a combination of heightened costs associated with the increased prime overburden movement, combined with increased depreciation associated with plant and equipment purchased to support the Bengalla growth project and to support the ramp up of the New Acland mine.
The company said it continues to generate strong operating cashflows through “execution of its organic growth pipeline, disciplined cost control and operational reliability.” Operating cashflow was $564.1 million for FY26, only slightly lower than FY25’s operating cashflow of $571 million.
One of the few positives of the result was a 28% rise in the free cashflow for the business, which can help fund the dividend payments.
Outlook for the New Hope share price
The company noted that the coal price recently reached US$148 per tonne, its strongest price since 2024.
New Hope expects Australia’s high-quality thermal coal to play a vital role in providing reliable and secure energy supply to the world.
At the current New Hope share price, it has a dividend yield of 6.2% without franking credits and 8.8% with franking credits.
Considering it’s up around 50% in the past year, I don’t think it’s cheap anymore. Even so, the dividend yield is high.
I’m not personally looking to invest in a coal miner, but it has certainly shown it can be a way for investors to make money.
