New Hope Posts Record 11.5Mt Output in FY26, Lifts Dividend to 40 Cents
Key Takeaways
- New Hope Corporation delivered record saleable coal production of 11.5Mt in FY26, up 7.6% on the prior year, beating the top end of its 10,200–11,500kt guidance range.
- Total ordinary dividends declared rose to 40 cents per share in FY26, up from 34 cents in FY25, even as net profit after tax fell 63.4% to $161M — a signal of management's confidence in the balance sheet's cash-generative capacity.
- Maxwell Mine commissioned its longwall in April 2026, with ROM coal production surging 129% to 1.3Mt, pointing toward a long-term target of approximately 6Mtpa over a 20-year approval period.
- Available cash grew to $778.5M at year-end despite $206.3M in dividends paid during the year, with free cash flow of $371M ($32/t) and a conservative debt-to-equity ratio of 0.11x.
- New Hope's long-term attributional saleable coal production target is approximately 15.0Mt across all three assets, with New Acland ramping toward 5Mtpa and Maxwell scaling following longwall commissioning.
FY26 full year results: record production and a 30-cent final dividend
In its FY26 full year results presentation dated 15 September 2026, New Hope Corporation delivered saleable coal production of 11.5Mt, up 7.6% on the prior year, while declaring a fully franked final dividend of 30 cents per share. The result demonstrated operational resilience against a softer coal price environment, with the realised price (including hedging) falling 10.0% to $145.2/t.
Total ordinary dividends declared for FY26 reached 40 cents per share, up from 34 cents in FY25, even as earnings came under pressure from the lower price environment. Total Shareholder Return over the twelve months to 31 July 2026 was 32.7%.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | $1,767M | $1,776M | 0.5% decrease |
| Underlying EBITDA | $514M | $766M | 32.8% decrease |
| Net profit after tax | $161M | $439M | 63.4% decrease |
| Earnings per share | 19.1 cents | 52.0 cents | — |
| Ordinary dividends declared per share | 40.0 cents | 34.0 cents | — |
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Operational performance across all three mines
New Hope’s three-asset portfolio each contributed to the group’s FY26 production growth, with the standout result coming from New Acland Mine’s continued ramp-up and Maxwell Mine reaching a material commissioning milestone.
Bengalla Mine — NSW backbone
Bengalla delivered ROM coal production of 10.0Mt (in line with the prior year) and saleable coal of 8.2Mt, up 4.1%. FOB cash cost (excluding royalties) came in at $81.3/t, a 6.2% increase but within guidance of $81–$89/t. The mine successfully returned to its 13.4Mtpa ROM coal target (on a 100% basis) in the second half of FY26, following a pit sequence realignment in the first half. Exploration across tenements EL9431, EL9863, and AL19 is underway to extend mine life beyond the existing permit.
New Acland Mine — Queensland ramp-up on track
New Acland was the operational highlight of the year. ROM coal production rose 8.6% to 6.9Mt, saleable coal climbed 17.3% to 3.3Mt, and coal sales increased 37.0% to 3.6Mt. The mine is ramping towards a steady-state target of approximately 5Mtpa of saleable coal. The group’s ownership of Queensland Bulk Handling (QBH) provides ongoing port cost savings as volumes grow.
Maxwell Mine — longwall milestone reached
Maxwell Mine, in which New Hope holds a 25.97% equity interest (increased from 22.98% during the year), achieved a significant development milestone. The longwall was commissioned in April 2026, with first coal achieved during the period. Development metres driven reached 32,748m, up 46%, while ROM coal production of 1.3Mt represented a 129% increase. The long-term target for Maxwell is approximately 6Mtpa of coal sales over a roughly 20-year approval period, with 300m longwall operating costs targeted at $63/t (excluding royalties and Safeguard Mechanism Costs), based on figures from the Malabar Resources Limited AGM Presentation dated November 2025.
The group’s saleable coal production growth trajectory on an attributional basis (reflecting 80% of Bengalla and 25.97% of Maxwell) was: 7.2Mt in FY23, 9.1Mt in FY24, 10.7Mt in FY25, and 11.7Mt in FY26.
Understanding thermal coal’s investment case
Thermal coal’s role in global energy supply remains a key part of how you should think about New Hope’s long-term earnings potential. High-quality Australian thermal coal commands a premium in Asian energy markets, and New Hope’s customer mix reflects that positioning directly: Japan accounts for 37% of coal revenue, China 26%, and Taiwan 22%, providing geographic diversification across three of Asia’s largest energy-importing economies.
The current gC NEWC 6000 spot price was US$148/t as at 11 September 2026. That sits well above the historical long-term average of US$83/t (measured from January 2009 to June 2021, prior to the global energy crisis), even after the significant softening from the FY22–FY23 peaks driven by Russia’s invasion of Ukraine and subsequent energy market disruptions.
Supply dynamics support the longer-term demand picture. Commodity Insights data (July 2026) flags an estimated supply shortfall of approximately 123Mt in Australian thermal coal supply versus projected base case demand by the late 2040s, though investors should note this is a long-range projection carrying inherent uncertainty.
New Hope’s cost position is what makes the investment case concrete. With group FOB cash costs of $88.9/t (excluding royalties), the business generated $514M in underlying EBITDA and $371M in free cash flow even at a realised price of $145.2/t. That is the margin resilience the low-cost asset base provides across the price cycle.
New Hope Corporation — Strategic Positioning
“We expect Australia’s high-quality thermal coal to play a vital role in providing reliable and secure energy supply to the world.”
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Capital management and the road ahead
New Hope’s FY26 capital management story is straightforward: a lower-earnings year, but a higher dividend. The 40 cents per share in total ordinary dividends declared for FY26, up from 34 cents in FY25, signals management’s confidence in the balance sheet and cash-generative capacity of its assets.
Available cash grew from $707.3M at the end of FY25 to $778.5M at the end of FY26, despite $206.3M in dividends paid during the year (comprising the FY25 final dividend of 15 cents per share and the FY26 interim dividend of 10 cents per share). Free cash flow for the year was $371M, or $32/t. The debt to equity ratio stands at 0.11x, reflecting a conservative balance sheet.
On the financing side, New Hope successfully issued $300M in new senior unsecured convertible notes at 2.625% and repurchased 97.77% of its existing convertible notes (which carried a 4.25% coupon), delivering a net refinancing benefit. A share buy-back remains on foot and can be utilised where value accretive.
Growth capital commitments at New Acland include road construction and realignments of $65M–$75M, equipment purchases of up to $50M, and other infrastructure of up to $10M, with $16M incurred to date on the public road realignment.
The forward production profile, on an attributional basis, points towards a long-term saleable coal production target of approximately 15.0Mt across all assets:
- Bengalla Mine operating at a 13.4Mtpa ROM coal production rate
- New Acland Mine ramping up to approximately 5Mtpa
- Maxwell Mine ramping up following longwall commissioning in April 2026
| Metric | Unit | FY26 Actuals | FY26 Guidance |
|---|---|---|---|
| New Hope Group | |||
| ROM Coal Production | ‘000t | 16,925 | 15,700 – 17,700 |
| Saleable Coal Production | ‘000t | 11,518 | 10,200 – 11,500 |
| Coal Sales | ‘000t | 11,789 | 10,200 – 11,500 |
| Bengalla Mine | |||
| ROM Coal Production | ‘000t | 10,031 | 9,400 – 10,200 |
| Saleable Coal Production | ‘000t | 8,186 | 7,400 – 8,100 |
| Coal Sales | ‘000t | 8,233 | 7,400 – 8,100 |
| FOB Cash Costs (excl. royalties) | A$/sales t | 81.3 | 81 – 89 |
| New Acland Mine | |||
| ROM Coal Production | ‘000t | 6,893 | 6,300 – 7,500 |
| Saleable Coal Production | ‘000t | 3,332 | 2,800 – 3,400 |
| Coal Sales | ‘000t | 3,556 | 2,800 – 3,400 |
For context on longer-term shareholder value creation, the presentation noted that since New Hope’s initial public offering to 31 July 2026, the cumulative total return on NHC shares has been approximately 10x greater than the ASX All Ordinaries Accumulation Index, with NHC delivering +6,152% compared with +617% for the index over the same period.
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