Lynas FY26 NPAT A$222.4m, Up From A$8.0m in FY25

Lynas (ASX:LYC) Rare Earths reported FY26 net profit after tax of A$222.4 million, up from A$8.0 million in FY25, on revenue of A$977.9 million against A$556.5 million. EBIT, which the release describes as a non-IFRS measure comprising net profit or loss before finance costs and income tax, was A$247.4 million against A$6.2 million, and EBITDA was A$386.0 million against A$101.2 million. Cost of sales rose to A$585.5 million from A$426.7 million, which Lynas said reflected higher fixed costs attributed to new facilities in commissioning and ramp up, the higher cost of sourcing inputs outside China, and cost escalation due to the current geopolitical environment. The release states that all dollar figures are in Australian dollars unless otherwise stated. NdPr sales volume increased 12% to 7,337 tonnes and total REO sales volume increased 11% to 12,122 tonnes, at a record average annual selling price of A$80.7 per kilogram of REO across all rare earth products. Closing cash, cash equivalents and short term deposits were A$1,209.1 million against A$166.5 million, which the company attributed to an equity raising comprising a A$750 million institutional placement and a share purchase plan of approximately A$182 million, together with strong operational performance.

Interim Chief Executive Officer Pol Le Roux said the record average annual selling price reflected improved market prices, an increased mix of heavy rare earth sales and sales with pricing not linked to the market index. The release states the average China domestic price of NdPr excluding VAT rose from US$55.0 per kilogram in June 2025 to US$100.8 per kilogram in June 2026, and says this was influenced by floor price agreements led by global governments, including agreements between Lynas and Japan Australia Rare Earths B.V. for supply to Japanese industry to 2038 and with the U.S. Government for supply to the U.S. industrial base over a four-year period. The updated 12-year JARE agreement announced in March 2026 includes firm offtake for 5,000 tonnes per annum of NdPr with a US$110 per kilogram NdPr floor price and an upside sharing arrangement when prices exceed US$150 per kilogram, capped at US$10 million a year. Operationally, first production of samarium oxide was achieved at Lynas Malaysia in March 2026, the Malaysian operating licence was renewed for 10 years commencing 3 March 2026, and at Mt Weld the hybrid renewable power station has been fully operational since January 2026 with average renewable electricity content of 93% in the second half. The 12-month rolling lost time injury frequency rate improved to 0.9 per million hours worked at 30 June 2026 from 1.8 in FY25, while the 12-month total recordable injury frequency rate increased to 4.1 per million hours worked from 3.6.