Why is Liontown (ASX: LTR) trading up +5%?
Liontown (LTR) has delivered its maiden annual profit as higher lithium prices and the continued ramp-up of Kathleen Valley drove a sharp improvement in FY2026 earnings.
- Revenue more than doubled to A$639.1 million, while underlying EBITDA rose to A$147.4 million from A$20.1 million as realised spodumene prices more than doubled through the year.
However, the headline A$92.6 million net profit was significantly boosted by the recognition of a A$113 million deferred tax asset relating to prior-year tax losses, with underlying NPAT of just A$14 million.
- Operationally, the result was very encouraging, with Kathleen Valley continuing to scale and management targeting a 2.8Mtpa run-rate by the end of FY27.
With FY27 concentrate production guided to 390,000–440,000 dry metric tonnes, the positive share-price reaction appears to reflect improving lithium prices and confidence in the mine’s ramp-up rather than the headline FY26 profit itself.
- We like LTR around $1.25 and hold it in our Emerging Companies Portfolio.
