Pilbara Minerals (ASX: PLS) has returned to the dividend ranks after three years away, with a sharp improvement in lithium prices helping the Western Australian miner deliver record production and a major earnings recovery.
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Revenue jumped 152% to $1.93 billion in FY26, while underlying EBITDA climbed from $97 million to $1.1 billion. Net profit swung from a $196 million loss in FY25 to a $526 million profit.
The stronger result was supported by a 17% increase in spodumene production to 879,500 tonnes and an average realised price of $2,164 per tonne for 5.2% spodumene concentrate.
PLS will pay a fully franked final dividend of 5 cents per share, representing a $161 million distribution and marking the company’s first dividend since 2023.
The lithium price recovery has transformed the earnings picture across the sector. A 6% spodumene concentrate price of $US2,350 per tonne is now more than four times the $US580 level recorded in June 2025.
That improvement has allowed PLS to move away from the defensive approach adopted during the lithium downturn and start putting more capital towards growth.
The company restarted the Ngungaju processing plant during FY26 and continued progressing the P2000 and Colina projects. PLS approved $175 million of pre investment funding for P2000 in June.
The stronger lithium market is being driven by demand from electric vehicles and battery storage, while expectations of tighter supply have improved sentiment towards producers that previously cut or suspended capacity during the downturn.
For investors, the key question is how sustainable the current lithium recovery will prove to be. PLS has significantly greater earnings leverage to higher prices now that production has increased, but that same exposure means weaker lithium prices could quickly affect margins and cash generation.
PLS shares have more than doubled over the past year, reaching $5.07 and giving the company a market value of $16.3 billion.
The FY26 result therefore marks a major change in the investment story. PLS is no longer simply positioning itself to survive a weak lithium cycle; it’s now generating significant cash from stronger prices, returning capital to shareholders and investing in further production growth.
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