Lithium producer Liontown Ltd. has reported a financial turnaround for the 2026 fiscal year, posting a maiden net profit of AU$93 million as strengthening commodity prices and scaling production at its Kathleen Valley operation boosted its bottom line.
The result marks a AU$286 million rebound from the AU$193 million net loss reported in fiscal 2025. The increase was driven by a gross operating profit of AU$94 million, record full-year revenue of AU$639 million, up from AU$298 million in 2025, and the recognition of a AU$113 million deferred tax asset. Stripping out one-off items, underlying net profit landed at AU$14 million.
Liontown generated strong underlying operational cash flows of AU$182 million alongside underlying earnings of AU$147 million. The top-line momentum was supported by a 35 per cent increase in concentrate sales volumes and a 75 per cent jump in realised spodumene concentrate prices.
“In this financial year, Kathleen Valley produced its maiden profit and strong operating cash while still ramping up, helped in the second half by better prices,” said CEO Tony Ottaviano.
“The market handed us two very different halves in the year. Prices were weak early, so we kept costs tight and preserved cash. When the market turned, we backed our own read of it and we are now reinvesting in Kathleen Valley with the same discipline.”
During the period, Liontown concluded open-pit mining to transition Kathleen Valley into a 100 per cent underground operation.
Underground development remains on schedule to hit a 2.8 million tonne per annum (Mtpa) run-rate by the end of FY27.
The West Australian project produced 391,992 dry metric tonnes (dmt) of concentrate and shipped 381,997 dmt at an average grade of 5.1 per cent lithium, meeting full-year operational guidance.
The company also significantly de-risked its balance sheet, cutting current loans and borrowings by AU$312 million following the equity conversion of LG Energy Solution convertible notes in February.
Looking ahead, Liontown is preparing for a final investment decision (FID) in Septmber regarding its Kathleen Valley expansion project as it targets sustainable, long-term operational resilience.
