PLS: +7.89%: Came out with a strong set of FY26 numbers, highlighting an ongoing earnings recovery as higher lithium volumes and an improved operating base drove earnings (EBITDA) above A$1bn, although net profit (NPAT) fell short of consensus.
Key results:
- Revenue of A$1.93bn, up from A$769m and in line with consensus.
- Underlying (EBITDA) of A$1.14bn, versus just A$97m last year.
- NPAT of A$525.8m, rebounding from a A$195.8m loss, but ~8% below A$572.7m expected.
- Final dividend of 5cps, fully franked.
After tapping debt markets through the period, PLS is now using a stronger financial position to invest across Pilgangoora and the Ngungaju restart. That provides significant leverage to another sustained lithium upswing, while the focus on lowering unit costs should make the business more resilient through the cycle. However, with several projects competing for capital, disciplined spending will be every bit as important as production growth.
MM’s view: PLS is in materially better shape than it was 12 months ago. We added PLS to the Active Growth Portfolio last week, and this result has reinforced what we like about the stock – PLS has entered FY27 as a larger, lower-cost business with financial flexibility and huge operating leverage if lithium prices remain supportive.
MM is long and bullish PLS
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