South32 Share Price Heads to Record High as H1 Profit Jumps, Dividend Rises
After the miner reported better half-year profitability, increased its dividend, and maintained its FY26 production outlook, South32's JSE
Quick overview
- South32 shares rose 3.61% to R52.84 after reporting a 29% increase in statutory profit for H1 FY26.
- The company announced a fully-franked interim dividend of US 3.9 cents per share, reflecting strong cash flow and balance sheet resilience.
- Despite a slight dip in revenue, profitability metrics improved significantly due to margin expansion and disciplined cost management.
- South32 reaffirmed its FY26 production outlook while expanding its capital management program to US$2.6 billion.
After the miner reported better half-year profitability, increased its dividend, and maintained its FY26 production outlook, South32’s (JSE: S32) shares are still rising.
Share Price Momentum Builds
South32’s share price gained 3.61% to close at R52.84 following the release of its H1 FY26 results, extending an already impressive run. Over the past 12 months, the stock has rallied 41%, significantly outperforming the broader JSE index.
Technically, the next upside target sits near the 2023 highs around R59, with the all-time highs from 2022 at R62 coming into focus if bullish momentum persists. The sustained uptrend reflects growing investor confidence in the company’s earnings quality and portfolio repositioning.
S32J Chart Weekly – Up 20% Monthly
Profit Growth and Dividend Increase
The diversified miner reported a 29% increase in statutory profit to US$464 million for the first half of FY26. Underlying earnings attributable to members rose 16% to US$435 million, supported by stronger base and precious metal prices.
South32 also announced a fully-franked interim dividend of US 3.9 cents per share, underlining balance sheet strength and cash flow resilience. The dividend uplift reinforces management’s commitment to shareholder returns amid improving profitability.
South32 Earnings Report – Key Highlights
Revenue (Continuing Operations):
- US$2,809 million
- ↓ 3% vs H1 FY25
- Reflects softer pricing and mixed production performance across key commodities
Profit After Tax (Attributable to Members):
- US$464 million
- ↑ 29% year-over-year
- Strong bottom-line growth despite slightly lower revenue
Underlying EBITDA:
- US$1,107 million
- ↑ 9%
- Indicates improved operating performance and cost discipline
Underlying Earnings (Attributable to Members):
- US$435 million
- ↑ 16%
- Demonstrates solid core profitability growth
Interim Dividend:
- Fully-franked dividend of US 3.9 cents per share
- ↑ 15%
- Signals confidence in cash flow generation and balance sheet strength
Net Tangible Assets (NTA) per Share:
- US$2.02
- Up from US$1.93 (as at 30 June 2025)
- Reflects strengthening asset base and retained earnings growth
Overall Takeaway
- Revenue dipped slightly, but profitability metrics improved meaningfully.
- Margin expansion and disciplined cost management supported earnings growth.
- Higher dividend and rising NTA reinforce balance sheet resilience.
Capital Management and Strategic Focus
The company expanded its capital management program by US$100 million to US$2.6 billion, with US$209 million remaining to be returned to shareholders by February 2027.
Operationally, South32 reaffirmed its FY26 production and unit cost guidance across operated assets, highlighting disciplined execution. During the half, the miner completed divestments of Cerro Matoso and Illawarra Metallurgical Coal, sharpening its focus on critical base metals. Meanwhile, Mozal Aluminium will transition to care and maintenance in March 2026 due to ongoing power supply constraints in Mozambique.
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