IGO Posts $145M Profit in FY26 as Spodumene Recovery Flips $955M Loss
Key Takeaways
- IGO swung from a $955M net loss in FY25 to a $145M net profit in FY26, driven by a $207M share of TLEA net profit as spodumene prices recovered through the second half of the year.
- Net cash rose 38% to $387M with no drawn debt, while underlying free cash flow surged 176% to $134M — positioning IGO with a debt-free balance sheet entering FY27.
- Nova delivered $228M in free cash flow (up 63%) and reduced its TRIFR safety rate 69% to 5.3, before its announced divestment to Global Lithium Resources completes.
- IGO declared a fully franked final dividend of 5.0 cents per share (~$38M), representing approximately 30% of underlying free cash flow and sitting at the mid-point of its 20–40% Capital Management Guideline range.
- FY27 priorities centre on completing the CGP3 ramp-up at Greenbushes, resolving the Kwinana pathway with partner TLC, and pursuing copper and lithium-focused exploration and M&A from a debt-free balance sheet.
A transformational year for safety and cash generation
In its FY26 results presentation released 27 August 2026, IGO Limited outlined a strong turnaround year across safety, operations and returns. The company delivered $323M in Group EBITDA, $387M in net cash (up 38%), $134M in underlying free cash flow (up 176%), and declared a 5.0 cent final dividend. The result marks a swing back to profitability with a $145M net profit after tax, a stark reversal from the $955M loss recorded in FY25. The turnaround was driven by the recovery in spodumene pricing through the second half of the year and an exceptional operational performance from Nova. For investors, this positions IGO with a debt-free balance sheet as it refocuses on growth in a recovering lithium price environment.
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A step-change in operational safety
Management highlighted FY26 as a transformational period for safety performance, with the Group’s 12-month Total Recordable Injury Frequency Rate (TRIFR) falling 64% to 3.7 from 10.2 at June 2025. Nova delivered an even steeper improvement, reducing its TRIFR 69% to 5.3 from 16.9 at June 2025. The presentation detailed two milestone achievements: more than 200 days without a recordable injury and more than 330 days without a Significant Potential Incident (SPI).
Key safety milestones included:
- 64% reduction in Group 12-month TRIFR
- +200 days without a recordable injury
- +330 days without an SPI
The safety improvement was not uniform across the portfolio. Greenbushes safety performance deteriorated mid-year, but all joint venture partners are now aligned on critical safety improvement programs. FY27 priorities include safe ramp-down at Nova and safe exploration drilling programs.
| Date | Nova Operation TRIFR | IGO Group TRIFR |
|---|---|---|
| Jun-25 | 16.9 | 10.2 |
| Sep-25 | 12.5 | 8.0 |
| Dec-25 | 9.9 | 6.5 |
| Mar-26 | 7.1 | 4.9 |
| Jun-26 | 5.3 | 3.7 |
Beyond safety, the year included significant portfolio moves. Forrestania was exited, the Nova sale to Global Lithium Resources was announced, and exploration tenure was rationalised. Leadership was renewed across the business to strengthen execution capability as the company refocuses toward growth.
Financial results: profitability restored on spodumene recovery
IGO returned to profitability in FY26 after the material losses recorded in FY25. The key driver was the company’s share of TLEA net profit of $207M, a sharp reversal from the $642M loss recorded in FY25. This swing reflects the recovery in spodumene pricing through the second half of FY26, which lifted margins at Greenbushes as the CGP3 chemical grade plant expansion continued to ramp up.
Nova was the operational engine of the year, contributing $228M of free cash flow, up 63% year-on-year. Cost discipline was evident across the business. Exploration expenditure fell 45% to $28M, and corporate and other costs dropped 13% to $58M. The presentation noted that IGO maintained a strong focus on cash generation and disciplined capital allocation throughout the period.
| Metric | Units | FY26 | FY25 | YoY |
|---|---|---|---|---|
| Revenue | A$M | 463 | 528 | ▼12% |
| Share of net profit/(loss) of TLEA | A$M | 207 | (642) | n/a |
| EBITDA | A$M | 323 | (709) | n/a |
| Net profit/(loss) after tax | A$M | 145 | (955) | n/a |
| Underlying EBITDA | A$M | 286 | (43) | n/a |
| Net cash flow from operating activities | A$M | 132 | 43 | ▲209% |
| Underlying free cash flow | A$M | 134 | 49 | ▲176% |
| Cash | A$M | 387 | 280 | ▲38% |
Note: Underlying measures of profit/(loss), EBITDA and NPAT are non-IFRS financial measures.
The $387M net cash position at 30 June 2026 was achieved with no drawn debt during the period, positioning IGO with significant balance sheet strength heading into FY27.
What TLEA and Greenbushes mean for you
IGO’s lithium exposure runs through TLEA, in which it holds a stake in the Greenbushes lithium asset. When spodumene prices rise, margins at Greenbushes improve, and IGO receives its share of TLEA net profit. When spodumene prices fall, the reverse occurs.
The CGP3 expansion (a chemical grade plant currently ramping up at Greenbushes) is designed to deliver a production step-up. This plant processes spodumene into higher-grade chemical products, which command better pricing than raw concentrate. The ramp-up was a key operational theme in the presentation.
What this tells you is that IGO’s earnings recovery is tightly linked to the lithium price cycle. The spodumene price recovery through the second half of FY26 is what swung the result from a $955M loss to a $145M profit. If spodumene pricing strengthens further, IGO’s share of TLEA net profit will follow. If it weakens, the reverse will occur. The CGP3 ramp-up adds volume upside to that equation.
Disciplined capital returns with a 5.0 cent dividend
IGO declared a fully franked final dividend of 5.0 cents per share (approximately $38M), with payment expected in late September 2026. The dividend represents approximately 30% of underlying free cash flow, placing it at the mid-point of the company’s Capital Management Guideline target range of 20–40%.
Management reiterated that capital priorities remain unchanged: balance sheet strength, disciplined growth, and shareholder returns. No drawn debt was recorded during FY26.
Key dividend facts:
- 5.0c fully franked final dividend
- ~$38M total, ~30% of underlying free cash flow
- No interim dividend paid or declared for FY26
- Payment expected late September 2026
FY27 priorities: optimise the portfolio, position for growth
Management outlined a two-pronged strategy for FY27: optimise the existing portfolio and deliver growth opportunities.
Portfolio optimisation priorities:
- Nova — Safe, stable operations through to completion of mining; complete divestment to Global Lithium Resources, supporting the workforce to the end.
- Greenbushes — Optimise the asset and complete the CGP3 ramp-up to deliver a production step-up.
- Kwinana — Maintain a strong focus on cash and disciplined capital allocation; work with partner TLC to determine the optimal pathway for IGO shareholders.
Growth delivery priorities:
- Exploration — Global focus on copper and lithium, targeted at opportunities with known mineralisation and genuine upside.
- BioHeap™ — Detailed technical and commercial work (capex/opex modelling) complete; progressing toward trial heaps.
- Disciplined M&A — Highly selective, copper and lithium only, accretive and strategy-aligned.
The presentation noted that these priorities are underpinned by the company’s team: engaged, values-led, and highly capable as the business refocuses toward growth.
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Investment takeaway
IGO exits FY26 debt-free with $387M cash, a restored profit, and a leaner, growth-focused portfolio leveraged to a recovering lithium price. The $207M share of TLEA net profit demonstrates the earnings sensitivity to spodumene pricing. With CGP3 ramping at Greenbushes, Nova delivering strong free cash flow through to divestment completion, and a disciplined exploration and M&A pipeline targeting copper and lithium, the company is positioned to convert balance sheet strength into growth as market conditions improve. The 5.0 cent final dividend signals disciplined capital management within guideline targets.
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