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Yancoal lifts 2025 coal output but profits slump on weaker prices

Story Highlights
  • Yancoal achieved record 2025 coal production and lower unit costs, but weaker coal prices drove a sharp fall in revenue and profit.
  • The company finished 2025 with strong cash reserves, maintained a 55% dividend payout, and set cautious 2026 guidance amid cost inflation and higher capex plans.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Yancoal lifts 2025 coal output but profits slump on weaker prices

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An update from Yancoal Australia ( (AU:YAL) ) is now available.

Yancoal Australia reported record 2025 coal output, with run-of-mine production up 7% and attributable saleable coal up 5%, helping reduce cash operating costs to $92 per tonne despite inflationary pressures. However, revenue fell 13% to $5.95 billion and profit after tax dropped 64% as realised coal prices slid 17%, compressing the operating EBITDA margin to 24%.

The miner ended the year with a robust $2.1 billion cash balance and returned A$769 million to shareholders in 2025, while declaring a fully franked final dividend that lifted the payout ratio to 55% in line with policy. For 2026, Yancoal is guiding slightly lower attributable saleable production, allowing for operational variability, modest cost inflation, and higher capital expenditure as it aims to sustain strong performance and preserve capacity to pursue growth opportunities.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$6.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

More about Yancoal Australia

Yancoal Australia is a major Australian coal producer, supplying both thermal and metallurgical coal to international markets. The company operates multiple large-scale mines and focuses on maintaining cost-competitive production while managing exposure to volatile global coal prices.

Average Trading Volume: 2,966,425

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$8.08B

For a thorough assessment of YAL stock, go to TipRanks’ Stock Analysis page.

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