Solid/inline result and production guidance maintained for the full year + they reaffirmed plans to deliver $60–80m of annualised cost savings by FY26, although Queensland cost expectations have crept ~10% above acquisition assumptions once inflation is factored in.
1H26 Highlights:
- Revenue: $2.48bn (-28% y/y) vs $2.49bn expected
- Net income:$69m (-31% y/y) vs consensus loss of ~$1m
- Underlying EBITDA: $446m (-54% y/y) vs $447m consensus
- Operating cash flow: $387m (-58% y/y)
- Interim dividend: $0.04/share vs $0.03 consensus
Production and cost guidance reiterated , with coal costs tracking the low end of the A$130–145/t range. Cash generation and buybacks help underpin the stock, but earnings remain highly leveraged to coal prices and cost discipline. A solid outcome given the challenging price environment.
MM remains long & bullish WHC
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