The PLS Group Ltd (ASX: PLS) share price is in focus after the lithium producer posted a 241% surge in underlying EBITDA to $253 million and returned to profit in the half-year to 31 December 2025.
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What did PLS Group report?
- Revenue jumped 47% to $624 million (H1 FY25: $426 million).
- Underlying EBITDA soared 241% to $253 million, with margin expanding to 41% (H1 FY25: 17%).
- Net profit after tax was $33 million, reversing a $69 million loss in the prior period.
- Production increased 6% to 432.8 thousand tonnes of spodumene concentrate.
- Sales volumes rose 7% to 446.0 thousand tonnes.
- No interim dividend was declared.
What else do investors need to know?
PLS Group (formerly Pilbara Minerals), achieved significant operational improvements, including an 8% decrease in unit operating costs to $563 per tonne (FOB). Higher sales volumes and strong market pricing underpinned the improvements.
The company closed the half with $954 million in cash and approximately $1.6 billion in total liquidity. Capital expenditure was $123 million, covering projects, mine development, and sustaining capital. Cash outflows were partly due to working capital timing, customer refunds, and pricing settlements.
While cash margins from operations totalled $174 million, underlying cash margins (adjusted) would be $291 million. The board reaffirmed its focus on financial flexibility, opting not to pay an interim dividend until market conditions support it.
What did PLS Group management say?
PLS Managing Director and CEO Dale Henderson, said:
PLS delivered a strong first half, generating Underlying EBITDA of $253 million at a 41% margin reinforcing our low cost position and ability to generate positive EBITDA through the cycle. The result was driven by higher realised pricing, reliable operating performance and continued cost discipline, with unit operating costs declining 8% to $563 per tonne (FOB).
Reported cash decreased modestly during the half, primarily reflecting customer refunds from the prior year and the timing of pricing settlements. We ended H1 with $954 million in cash and approximately $1.6 billion in total liquidity.
These outcomes reflect consistent execution of our through-the-cycle strategy – aligning production with market conditions while preserving balance sheet strength and maintaining full operational control. Our scale and 100% ownership across our Australian and Brazilian assets provide structural flexibility and clear differentiation within the sector.
Consistent with our capital allocation framework and disciplined approach to capital management, the Board has determined not to declare an interim dividend for H1 FY26, prioritising financial flexibility through the cycle.
What's next for PLS Group?
Looking ahead, PLS Group is prioritising balance sheet strength and operational flexibility as lithium market conditions evolve. Management plans to maintain disciplined capital management while progressing projects in Australia and Brazil.
The board indicated a dividend could be considered at the full-year results if lithium prices and free cash flow remain supportive. The company's significant liquidity provides confidence to navigate market cycles and fund future growth.
PLS Group share price snapshot
Over the past 12 months, PLS Group shares have risen 121%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
