Australian miner Whitehaven Coal Ltd. reported a 41% year-on-year decline in net profit after tax for fiscal 2025-26 (ended June 30), citing weak coal prices and a stronger Australian dollar.

Revenue for the period totaled A$5.40 billion, down 7% year on year, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8% to A$1.25 billion.

Chief Executive Paul Flynn said the company delivered solid operational and financial results in fiscal 2026 despite cyclical coal price weakness and Australian dollar appreciation, noting a strong recovery in the third quarter after wet weather in Queensland challenged production.

The company successfully integrated its Queensland metallurgical coal assets during the year, achieved record safety performance and significantly reduced financing costs through debt refinancing, laying the foundation for long-term growth.

Unit production costs fell 5% to A$132/t in fiscal 2025-26 from A$139/t in 2024-25, at the lower end of the full-year guidance range of A$130-145/t, supported by higher output and strict cost controls that offset higher diesel prices.

Net debt stood at A$1.33 billion as of June 30, 2026, up from A$634 million in fiscal 2025, mainly due to the second deferred payment of $500 million to BHP Mitsubishi Alliance (BMA). Operating cash flow was A$857 million and capital expenditure A$349 million, while investing cash outflows of A$1.18 billion were largely acquisition-related payments.

Group-managed raw coal production reached 40.30 million tonnes in fiscal 2025-26, up 3% year on year and at the upper end of the 37-41 million tonnes guidance range, driven by strong performance across Queensland and New South Wales operations.

Managed commercial coal sales totaled 32.7 million tonnes, up 8% year on year. Equity commercial coal sales were 26 million tonnes, slightly below 26.50 million tonnes a year earlier, reflecting the sale of a 30% interest in Blackwater mine in March 2025.

Metallurgical coal accounted for 57% of revenue in fiscal 2025-26, down from 64% in 2024-25, with thermal coal at 43%, reflecting relatively weaker met coal prices and the Blackwater equity sale.

Average coal selling prices fell 6% year on year to A$202/t, with Queensland operations at A$229/t, down 1%, and New South Wales at A$117/t, down 8%.

For fiscal 2026-27, the company guided managed raw coal production of 38-41 million tonnes, comprising 18.80-20.30 million tonnes from Queensland and 19.20-20.70 million tonnes from New South Wales. Equity coal sales are targeted at 23.90-26 million tonnes, with Queensland at 11.60-12.60 Mt and New South Wales at 12.30-13.40 million tonnes.

Looking at global markets, the company expected structural shortfall in global metallurgical coal production, particularly the long-term depletion of HCC from Australian producers combined with increased seaborne demand from India, is anticipated to drive higher metallurgical coal prices over the long-term.

For thermal coal, long-term demand for seaborne high-CV thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high-CV thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity.