Mineral Resources Ltd (ASX: MIN) shares are getting clobbered today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $37.45. In late morning trade on Thursday, shares are changing hands for $35.43 apiece, down 5.4%.
For some context, the ASX 200 is down 0.1% at this same time.
This follows the release of the Aussie miner's full-year financial results (FY 2025).
Here's what's got investors heading for the exit today.
Mineral Resources shares hit on results
Investors are pressuring Mineral Resources shares after the company reported a 15% year-on-year drop in revenue to $4.5 billion.
FY 2025 revenue came under pressure primarily due to weaker iron ore and lithium prices, with the ramp-up of the miner's Onslow Iron project partially helping to offset the decline in revenue.
Full-year underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) were also down 15% from FY 2024 to $900 million.
The company's Mining Services segment was a standout performer, achieving record earnings amid the ramp-up of Onslow Iron and new contract wins.
Management noted that Onslow Iron operated at an annualised run rate of 35 million tonnes per annum (Mtpa) in the four weeks to 26 August. "This strong performance is in line with guidance for achieving nameplate capacity in Q1 FY26," they said.
On the bottom line, Mineral Resources shares are facing headwinds today with the miner reporting an underlying net loss after tax of $112 million. In a positive sign, MinRes achieved an underlying net profit after tax (NPAT) of $84 million in the second half of the financial year.
Statutory NPAT for the full year came in at a loss of $896 million, which includes $632 million of post-tax impairment charges. In FY 2024, Mineral Resources achieved a statutory NPAT of $114 million.
In light of the difficult year, the board did not declare a final dividend.
Turning to the balance sheet, the ASX 200 miner held cash of $412 million at the end of the financial year, down 55%. Net debt of $5.3 billion was up 21% year on year. Liquidity was reported to be more than $1.1 billion.
What did management say?
Commenting on the results pressuring Mineral Resources shares today, independent non-executive chair Malcolm Bundey said, "A strengthened balance sheet, through disciplined capital allocation and prudent financial management, remains a top priority."
Bundey added:
With Onslow Iron ramping up and generating material positive cash flows, and capital spend reducing significantly over the next two years, we expect to see accelerated organic deleveraging, with leverage to decline towards our two-times target.
And Bundey sounded some positive notes on the Onslow Iron project. He said:
Onslow Iron underpins our future as a resilient, low-cost, long-life operator. In just under two years from breaking ground at the Ken's Bore mine, the speed and scale of progress have been remarkable…
Onslow Iron is a generational asset that will underpin organic deleveraging of the balance sheet, drive the next phase of long-term growth for our mining services business and deliver earnings, cash and balance sheet strength to capture future projects.
What's next for Mineral Resources shares?
Looking to what could impact Mineral Resources shares in the year ahead, the miner forecasts FY 2026 capex of $1.1 billion, with roughly half to be invested at Onslow Iron and the remaining relating to sustaining capex.
The company's Mining Services division is forecast to deliver production volumes of 305 to 325 million tonnes (Mt), representing 12.5% volume growth.
Management said that global lithium market conditions remain volatile, with the company focused on cost reductions and efficiencies to "ensure the business is well positioned to benefit when prices recover".
With today's intraday slide factored in, Mineral Resources shares are down 19.8% over 12 months. Shares remain up 2.4% in 2025.
