Liontown Posts $639M Revenue in FY26 as Kathleen Valley Hits Profitability
Key Takeaways
- Liontown reported record FY26 revenue of $639m, up 115% on FY25, driven by a 75% rise in average realised spodumene price to US$1,379/dmt and a 35% increase in concentrate shipped to 381,997dmt.
- The company generated $182m in operating cash flow and delivered its first underlying NPAT of $14m from Kathleen Valley Operations — a $154m turnaround from the prior period.
- The balance sheet transformed from net debt of $567m to net cash of $192m at 30 June 2026, with cash rising to $561m following the August 2025 equity raising and the LGES convertible note conversion in February 2026.
- Underground mining equipment will nearly double from 21 to 41 units by end of FY27, with 7 new mine levels being unlocked to support the pathway to the 2.8Mtpa run-rate target.
- The expansion Final Investment Decision is expected by end of Q1 FY27, with up to $77m in early works already committed — including procurement of a 5.5MW ball mill and North-West Flats underground development.
Liontown delivers record FY26 revenue as Kathleen Valley ramp-up hits its stride
In its FY26 full-year results presentation released to the market on 31 August 2026, Liontown detailed a year of record revenue and operating cash generation as its Kathleen Valley lithium operation moved from ramp-up to profitability. The company reported $639m in revenue (up 115% on FY25) and $182m in operating cash flow — delivered before the operation reached its 2.8Mtpa run-rate target expected by the end of FY27.
The presentation outlined a strategic pivot from cash preservation to disciplined reinvestment, underpinned by the lithium price recovery. Spot spodumene concentrate pricing (SC6) rose 251% year-on-year, from US$630/t at 30 June 2025 to US$2,210/t at 30 June 2026. Management highlighted the company’s move to accelerate underground development, recommission the North-West Flats deposit, and restart deferred capital works — positioning Kathleen Valley for capacity expansion subject to sustained market demand.
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FY26 headline results at a glance
Liontown reported its first underlying profit from Kathleen Valley operations, with underlying net profit after tax (NPAT) of $14m for the year — a turnaround of $154m from the prior period. The company noted this as the first underlying NPAT generated from Kathleen Valley Operations. Statutory NPAT came in at $93m, boosted by $113m from the full recognition of carry-forward tax losses from prior years.
Revenue growth was driven by higher sales volumes (concentrate shipped rose 35% to 381,997dmt) and a 75% increase in average realised price to US$1,379 per dmt of SC6e (CIF terms). Underlying EBITDA reached $147m, up 633% on the prior year. Operating cash flow of $182m reflected stronger H2 pricing and production ramp-up, despite the transition from open-pit to underground mining driving unit operating costs higher.
FY25 comparisons reflect only 11 months of operations and 10 months of sales, compared with a full 12 months in FY26.
| Metric | FY26 | FY25¹ | Change | Change % |
|---|---|---|---|---|
| Revenue ($m) | $639m | $298m | +$342m | +115% |
| Realised price (US$/dmt SC6e CIF) | US$1,379 | US$788 | +US$591 | +75% |
| Underlying EBITDA ($m) | $147m | $20m | +$127m | +633% |
| Underlying NPAT ($m) | $14m | -$140m | +$154m | +110% |
| Statutory NPAT ($m) | $93m | -$193m | +$286m | +148% |
| Operating cash flow ($m) | $182m | $1m | +$181m | +25,414% |
¹ FY25 reflects only 11 months of operations and 10 months of sales, compared with 12 months in FY26.
Operational momentum builds through the underground transition
The company delivered its strongest year of underground development on record, mining 9,737m to unlock underground mining capacity and complete the scheduled transition from open-pit operations. Underground ore accounted for 58% of total ore mined in FY26, compared with 18% in H2 FY25. That shift drove unit operating costs (UOC) higher year-on-year as underground mining carries higher per-tonne costs than open-pit extraction.
Key operational metrics for the year:
- Underground development: 9,737m (strongest year on record)
- Ore mined: 2,208kt (including 1,291kt underground)
- Ore processed: 2,483kt
- Concentrate produced: 391,992dmt at 5.1% Li₂O
- Concentrate shipped: 381,997dmt at 5.1% Li₂O
- Unit Operating Cost: A$984/dmt (up 23% year-on-year, driven by the shift to underground ore — 58% of total ore in FY26 versus 18% in H2 FY25)
Understanding the lithium ramp-up: why the transition to underground matters
A production ramp-up refers to the period during which a mining operation scales from initial production toward a target run-rate — in Liontown’s case, 2.8 million tonnes per annum (Mtpa) by the end of FY27. During this phase, costs per tonne are typically elevated because equipment, labour, and infrastructure are in place for the target capacity, but production volumes are still climbing. The shift from open-pit to underground mining adds further cost pressure. Open-pit mining is mechanised and relatively low-cost per tonne. Underground mining requires tunnelling, additional development metres, and more intensive labour and equipment deployment. The realised spodumene price (SC6e CIF) is the per-tonne revenue Liontown receives for concentrate sold. That price tracks global lithium market cycles, which directly shape miner economics. What this tells you: unit costs should improve as the operation reaches full 2.8Mtpa scale and benefits from underground productivity gains and higher ore intensity at depth.
Balance sheet transformed: from net debt to net cash
The company moved from a net debt position of $567m at 30 June 2025 to net cash of $192m at 30 June 2026. That turnaround was driven by operating cash generation, the August 2025 equity raising, and the conversion of the LG Energy Solution (LGES) convertible note in February 2026. Total debt fell $353m following the LGES conversion, which eliminated the convertible note liability and related derivative obligations.
Key balance sheet metrics at 30 June 2026:
- Cash: $561m (up from $156m at 30 June 2025)
- Net cash: $192m (from net debt of $567m at 30 June 2025)
- Total debt reduced $353m following LGES convertible note conversion
- Gross gearing: 20% (down from 55%)
- Net gearing: zero (down from 49%)
- Financing inflows: $357m (primarily the August 2025 equity raising)
The lithium market recovery underpins Liontown’s pivot from cash preservation to reinvestment in Growth initiatives, while preserving future resilience through the cycle.
The pivot to disciplined growth: reinvesting on conviction
The lithium price recovery shaped the company’s FY26 strategic shift. Spot spodumene concentrate pricing (SC6) rose from US$630/t at 30 June 2025 to US$2,210/t at 30 June 2026, a gain of 251% over the 12-month period. That recovery prompted management to pivot from the November 2024 cash-preservation approach, which had deferred the North-West Flats deposit to FY31 and removed approximately 38,000 development metres to preserve cash during the price downturn.
Management detailed the strategic pivot from Preserve to Reinvest mode:
Preserve (November 2024 mine plan optimisation):
- Flat 2.8Mtpa mine plan to FY30
- North-West Flats deferred to FY31
- Removed approximately 38,000 development metres
Reinvest (FY26 and beyond):
- Accelerating underground development
- Restarting deferred capital works
- Recommissioning North-West Flats deposit
- Early works and long-lead procurement underway
The company emphasised financial discipline within the pivot. The expansion Final Investment Decision (FID) is expected by the end of Q1 FY27 and remains subject to market demand. That conditionality preserves flexibility if lithium pricing weakens.
FY27 outlook: pathway to 2.8Mtpa on track and accelerating
The presentation reiterated the company’s pathway to a 2.8Mtpa run-rate by the end of FY27. Management outlined a step-up in production expected from Q2 FY27 as new underground mine levels are opened and additional mining equipment is deployed. The company is unlocking 7 new mine levels during FY27, bringing the total to 14 levels by June 2027 (up from 4 at June 2026). Underground mining equipment will nearly double, from 21 units at the end of FY26 to 41 units by the end of FY27.
Early works on the Kathleen Valley expansion are underway, with up to $77m committed ahead of the expansion FID. Of that total, $14m was incurred in FY26. Early works include Mine Services Area (MSA) Stage 1 construction, procurement of a 5.5MW ball mill (critical path for throughput and recovery improvements), and underground development at North-West Flats. Development ore from North-West Flats is expected to be delivered in late FY27.
The expansion FID is expected by the end of Q1 FY27 and remains subject to market demand.
Management flagged a near-term production caveat for Q1 FY27. Shipments are expected to be deferred due to significant surge events and planned maintenance at Geraldton port.
| Metric | Unit | FY27 Guidance |
|---|---|---|
| Concentrate production¹ | kdmt | 390–440 |
| Unit Operating Cost | A$/dmt sold | 1,050–1,250 |
| Total capital expenditure² | $m | 320–370 |
¹ Concentrate production guidance at 5.1% grade allows for planned shutdowns and additional downtime required to complete expansion tie-ins during the year.
² Capital guidance excludes expansion capital tied to the Kathleen Valley expansion FID.
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Why FY26 matters for the Liontown investment case
FY26 marked the shift from ramp-up losses to profitability and from net debt to net cash. What this tells you as an investor:
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Proven cash generation before full scale. The company generated $182m in operating cash flow during FY26 despite operating well below the 2.8Mtpa target run-rate. That demonstrates the operation’s cash generation potential once full capacity is reached.
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Balance sheet strength funds the expansion internally. Cash of $561m and net cash of $192m at 30 June 2026 means the ramp-up to 2.8Mtpa and expansion early works are funded from operating cash.
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First underlying profit from Kathleen Valley. The $14m underlying NPAT is the first underlying profit generated from Kathleen Valley Operations, marking the transition from construction and ramp-up to a cash-generative, profitable operation.
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Optionality preserved for capital-efficient scaling. North-West Flats underground development has already commenced, and the process plant was built with expansion capacity installed from day one. That structure allows the company to scale production incrementally and flexibly as market demand and pricing justify expansion capital deployment.
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Structural supply gap supports long-term pricing. New lithium operations are estimated to take 5–8 years from maiden resource to first production. Brownfield expansions take an estimated 2–3 years from FID to production. That supply lag supports Liontown’s investment case if lithium demand growth outpaces new supply additions.
The company outlined a pathway to disciplined expansion, with the FID expected by the end of Q1 FY27 and subject to market demand. That optionality — ready to scale but preserving flexibility — positions Liontown to deploy capital incrementally as lithium market fundamentals justify expansion investment.
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