PLS Group Ltd (ASX: PLS) shares were among the best performers on the S&P/ASX 200 index (ASX: XJO) in August.
During the month, the lithium giant's shares surged 30% to end the period at $5.40.
This means the company's shares are now up a remarkable 120% over the past 12 months.
Image source: Getty Images
Why did PLS shares rocket in August?
Investors were fighting to get hold of PLS shares following the release of its FY 2026 results.
For the 12 months ended 30 June, the lithium miner reported a 152% increase in revenue to $1,934 million.
This was driven by a 17% increase in sales volumes to 891.6kt and a 121% jump in its average estimated realised price to US$1,488 per tonne.
Another positive was that its unit operating cost (FOB) improved by 9% to $569/t (US$386/t), which management advised reflects higher volumes and ongoing operational improvements.
This ultimately underpinned a more than 1,000% increase in underlying EBITDA to $1,137 million (from $97 million) and a net profit after tax of $526 million, which was up from a $196 million loss a year earlier.
The good news for shareholders is that this allowed the PLS board to bring back its dividend. It is paying shareholders a 5 cents per share fully franked dividend for the half.
Commenting on the results, PLS' CEO, Dale Henderson, said:
FY26 was a record year for PLS, demonstrating our through-cycle strategy in action. We had positioned the business to respond quickly when market conditions improved and, as the lithium market strengthened, we acted – bringing idled capacity back into production and shifting our focus decisively from defence to growth. That preparation is reflected in the results. We delivered record production of approximately 880 thousand tonnes while reducing unit operating costs by 9%, generating $1.1 billion of underlying EBITDA at a 59% margin and $1.4 billion of cash margin from operations. These are strong outcomes and a credit to our team.
With 100% ownership of Pilgangoora, our shareholders receive the full benefit of the scale, low-cost position and operating leverage we have built. We also strengthened the business for what comes next. During the year we accessed the international debt capital markets for the first time through our US$600 million bond and finished FY26 with $2.3 billion of cash. That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share.
We enter FY27 larger, lower cost and financially stronger than we were a year ago. We remain confident in the long-term opportunity for lithium, and our focus is on continuing to execute well, allocating capital with discipline and delivering value for our shareholders.
Should you invest?
According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts still see value in PLS shares at current levels.
In response to its FY 2026 results, the broker retained its outperform rating and $6.00 price target on its shares.
Based on its current share price, this implies potential upside of approximately 11% for investors over the next 12 months.
