AJ Lucas Group (AJL) H1 2026 earnings summary

Executive summary

• Net profit after tax of $38.9 million for H1 FY26, reversing a $11.5 million loss in H1 FY25, driven by a $25.9 million UK settlement and improved Australian operations.

• Group EBITDA surged 335.8% to $38.5 million, reflecting the UK settlement and operational efficiencies in Australia.

Financial highlights

• Revenue from continuing operations declined 11.8% year-over-year to $66.9 million due to subdued metallurgical coal markets and suspended mining at two client sites.

• Australian operations EBITDA rose 37.7% to $14.1 million, driven by operational efficiency and reduced downtime.

• UK operations EBITDA improved to $24.4 million from a $1.4 million loss, aided by a one-off settlement.

• Net finance income: $3.6 million (vs. $16.1 million net cost prior year), mainly from interest concessions on related party loans.

• Net tangible asset backing improved to -3.1 cents/share from -6.3 cents/share at June 2025.

• No interim dividend declared.

Outlook and guidance

• Australian operations will focus on servicing customers and exploring new drilling market opportunities.

• UK operations will maintain cost-effective compliance and pursue removal of the shale gas moratorium, while evaluating conventional gas development.

• Operational improvements and cost efficiencies are expected to continue supporting earnings despite challenging market conditions.