Pilbara Minerals shares storming higher on record FY 2025 lithium production

As the third most shorted stock on the ASX, not everyone will be cheering Pilbara Minerals share price gains on Monday.

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Pilbara Minerals Ltd (ASX: PLS) shares are leaping higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed Friday trading for $2.11. In early afternoon trade on Monday, shares are changing hands for $2.19 apiece, up 3.8%.

For some context, the ASX 200 is up 0.3% at this same time.

Today's strong performance is certainly good news for faithful shareholders, though not so good for the host of short sellers betting the stock will fall. Pilbara Minerals shares are kicking off this week as the third most shorted share on the ASX, with a short interest of 15.1%.

Here's what's boosting the lithium miner today.

Pilbara Minerals shares lift on production boost

Investors are bidding up Pilbara Minerals' shares today following the release of the company's full year financial results (FY 2025).

Highlights include a 4% year on year increase in spodumene concentrate (a lithium-bearing mineral) production to a record 754,600 tonnes. Sales came in at 760,100 tonnes, up 7%.

Still, that wasn't enough to stem a 39% decline in revenue in FY 2025 to $769 million. This was driven by a 43% decrease in the average realised price Pilbara received for its lithium to US$672 per tonne (CIF China) on a SC5.3% basis.

Amid the slumping lithium price, the miner saw an 83% year on year decrease in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $97 million.

But most of this looks to already have been baked into the price, with Pilbara Minerals shares rising today despite the ASX 200 miner reporting a statutory loss after tax of $196 million.

The company said this reflects lower pricing, higher depreciation expense, construction costs for its Mid-Stream Demonstration Plant Project, and non-cash impacts from its investment in the P-PLS hard rock lithium project.

The financial year also saw Pilbara complete its acquisition of Latin Resources.

As at 30 June, the ASX 200 miner had a cash balance of $974 million, down 40% from the previous year.

What did management say?

Commenting on the results helping to boost Pilbara Minerals shares today, CEO Dale Henderson said, "FY25 marked a transformational year for PLS."

Henderson added:

While the lithium market experienced material pricing pressure, we maintained strong operational performance, completed a major phase of capital investment, and positioned the business for the next phase of growth.

We delivered record production and reduced unit operating costs, highlighting the strength and scalability of the Pilgangoora Operation.

What's next for Pilbara Minerals shares?

Looking to the financial year ahead, Henderson said, "The long-term fundamentals for lithium remain intact. Current prices are not sufficient to incentivise new supply, which points to potential tightness ahead."

Henderson concluded:

In FY 2026, our focus sharpens on delivering further cost reductions and efficiency gains through the expanded Cost Smart program and embedding continuous improvement across all areas of the business. PLS is well positioned to create value through the cycle.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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