Pilbara Minerals Ltd (ASX:PLS) has reported a steep drop in full-year earnings as weaker lithium prices hit revenue, though record production and a solid balance sheet helped the miner finish the 2025 financial year in a stronger operational position.
Revenue fell 39% to $769 million, reflecting a 43% slump in the average realised price to US$672 a tonne. Sales volumes lifted 7% to 760,100 tonnes, but this was not enough to offset pricing pressure.
Underlying earnings (EBITDA) slid 83% to $97 million, while the company swung to a statutory loss after tax of $196 million, compared with a profit a year earlier. The result also factored in higher depreciation from expanded operations, construction costs for Pilbara’s Mid-Stream Demonstration Plant and non-cash losses tied to its POSCO joint venture.
Despite the weaker market, Pilbara ended the year with $974 million cash and $1.6 billion in total liquidity, supported by an established debt facility and tighter cost control. No final dividend was declared.
Expansion and acquisition strategy
The 2025 financial year saw Pilbara complete its P680 and P1000 expansion projects at Pilgangoora, cementing its position as the world’s largest independent hard-rock lithium producer. Management says focus has now shifted to continuous improvement and lowering operating costs through the P850 program.
The company also finalised the acquisition of Latin Resources, adding the Colina lithium project in Brazil to its portfolio, while maintaining flexibility with the Ngungaju Plant in case of market recovery.
Long-term outlook ‘intact’
Chief executive Dale Henderson described FY25 as “transformational” despite pricing pressure, highlighting record output, lower costs and a strengthened processing platform.
“The long-term fundamentals for lithium remain intact,” he said. “Current prices are not sufficient to incentivise new supply, which points to potential tightness ahead.
“While market volatility may persist in the near term, our confidence is anchored in what we control — disciplined execution, operational excellence and strategic agility.”
Shares in Pilbara Minerals rose nearly 2.4% to $2.16 in afternoon trade, outperforming the broader ASX 200, as investors looked beyond the headline loss to the miner’s production growth and cash position.