The Whitehaven Coal Ltd (ASX: WHC) share price could be in focus today after the company delivered managed full-year run-of-mine (ROM) coal production and sales at the top end of guidance, with FY26 unit costs and capital expenditure coming in better than expected.
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What did Whitehaven Coal report?
- FY26 managed ROM coal production: 40.3 million tonnes (Mt), up 3% on FY25, topping guidance
- FY26 equity sales of produced coal: 26.0Mt
- FY26 revenue mix: 57% metallurgical and 43% thermal coal
- Unit cost of coal: approximately A$132/t, at the low end of guidance
- Capital expenditure: approximately A$350 million, at the low end of guidance
- Net debt at 30 June 2026: A$1.3 billion (following a US$500 million acquisition payment)
- Annual cost savings: delivered A$60–80 million as planned
What else do investors need to know?
Whitehaven's Queensland and New South Wales operations both finished FY26 at the top end of their production and sales targets. In Queensland, June quarter ROM production jumped 41% quarter-on-quarter, recovering strongly from earlier weather disruptions. New South Wales managed to grow its yearly ROM output by 6%.
During the period, the company continued its share buy-back program, repurchasing 10.1 million shares worth A$77 million for the year. Whitehaven also completed the refinancing of its debt facilities, which included issuing US$900 million of notes to diversify funding and extend debt maturities.
What did Whitehaven Coal management say?
CEO & Managing Director Paul Flynn said:
Whitehaven delivered a strong finish to FY26, with June quarter managed ROM production of 10.7Mt and full year ROM production of 40.3Mt. June quarter equity sales were 6.3Mt, contributing to FY26 equity sales of produced coal of 26.0Mt.
Both Queensland and New South Wales operations achieved ROM production and sales outcomes at the top end of guidance, demonstrating the quality and resilience of our asset portfolio.
Our revenue mix for FY26 was 57% metallurgical coal and 43% thermal coal, providing diversified exposure to both steelmaking and energy markets.
Cost discipline remained a key focus throughout FY26. Subject to final audit, unit cost of production is expected to be A$132/t, at the low end of guidance, and capital expenditure is also expected to finish towards the low end of guidance. In addition, we delivered annualised cost savings within our A$60-80 million target range.
Our balance sheet remains robust. During the quarter, the second US$500 million deferred acquisition payment to BMA was paid, and we completed the refinancing of our debt facilities, substantially reducing our cost of debt, diversifying funding, and extending maturities.
What's next for Whitehaven Coal?
FY27 production and unit cost guidance will be provided with the release of Whitehaven's full-year results in August. The company still has further milestone payments due for its Daunia and Blackwater acquisitions in FY27, with the final deferred and contingent consideration scheduled by mid-2027.
Whitehaven notes positive underlying market conditions for both metallurgical and thermal coal, highlighting long-term demand for steelmaking and energy supply, while remaining committed to disciplined capital management and project development aligned with market conditions.
Whitehaven Coal share price snapshot
Over the past 12 months, Whitehaven Coal shares have risen 12%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.
