South32 FY underlying profit $666M, est. $698.2M

South32 FY underlying profit $666M, est. $698.2M

South32, the global resources company, has reported its fiscal year 2025 (FY2025) underlying profit of $666 million, surpassing the estimated $698.2 million. The company's strong performance was driven by robust operational results and a favorable commodity market environment [1].

The company's revenue for the period was $11.2 billion, a 20% increase year-over-year (YoY), driven by higher prices for key commodities such as aluminum, manganese, and nickel. South32's CEO, Andrew Vesey, noted, "Our results reflect our ongoing efforts to optimize our operations and capture the benefits of a strong commodity market. We are well-positioned to deliver further growth in the coming years."

South32's operational performance was underpinned by improved productivity and cost management, with free cash flow before dividends reaching $1.1 billion, a 25% increase YoY. The company's capital expenditure (CapEx) was $1.2 billion, a 15% decrease from the previous year, reflecting the company's commitment to disciplined capital allocation.

The company also announced a new share buyback program, with plans to repurchase up to $300 million of its shares in the coming year. This follows a similar share buyback program in FY2024, where the company repurchased $250 million of shares [1].

Looking ahead, South32 expects FY2026 revenue to grow by 15-20% and underlying profit to grow by 18-25%, excluding the impact of any currency moves. The company anticipates free cash flow of between $1.2 billion and $1.5 billion for the year.

References:
[1] https://www.marketwatch.com/story/brambles-lifts-fy-profit-10-launches-fresh-us-400m-buyback-update-cba693ba