Fenix Reports A$316M Revenue Up 22%, Net Profit Falls 84% in FY25
Fenix Resources reported a strong 22% revenue increase for FY25 but saw net profit tumble 84% amid heavy investment in production expansion. The company declared a fully franked dividend exceeding net profit, balancing shareholder returns with growth ambitions.
- FY25 revenue up 22% to A$316.1 million
- Net profit after tax down 84% to A$5.4 million
- Production capacity target increased from 1.4Mtpa to 4Mtpa
- Final fully franked dividend of 1.0 cent per share declared
- Net tangible assets per share rose slightly to A$0.21
Revenue Growth Amid Profit Decline
Fenix Resources Limited has delivered a mixed set of results for the financial year ended 30 June 2025. The company’s revenue climbed 22% to A$316.1 million, reflecting robust sales and operational momentum in its iron ore production segment. However, this top-line growth was overshadowed by a steep 84% drop in net profit after tax, which fell to just A$5.4 million from A$33.6 million the previous year.
Heavy Investment in Expansion
The sharp decline in profitability is largely attributable to Fenix’s strategic decision to invest heavily in expanding its production capacity. The company increased its target output from 1.4 million tonnes per annum (Mtpa) to 4 Mtpa, a near tripling of capacity aimed at capturing greater market share and long-term growth. Key projects such as the Shine ramp-up were completed on time and within budget, while the Beebyn-W11 mine commenced commissioning with its first shipment post-year-end, on track for 1.5 Mtpa production in 2025.
Dividend Declaration and Shareholder Returns
Despite the profit squeeze, Fenix declared a final fully franked dividend of 1.0 cent per share, amounting to approximately A$7.4 million. Notably, this dividend payment represents about 137% of the company’s net profit after tax, signaling a commitment to reward shareholders even in a year of heavy capital expenditure. The board emphasized balancing shareholder returns with the need to retain funding for ongoing growth opportunities, supported by a healthy cash balance of A$56.8 million as of 30 June 2025.
Net Tangible Assets and Financial Position
Fenix’s net tangible assets per share edged up slightly to A$0.21, reflecting the company’s asset base growth alongside its expansion efforts. The company’s financial statements, audited by Grant Thornton Audit Pty Ltd, confirm consistent accounting policies and a stable balance sheet despite the profit volatility. The absence of a dividend reinvestment plan suggests the company is prioritizing direct shareholder returns over internal capital recycling at this stage.
Looking Ahead
Fenix Resources’ FY25 results underscore the challenges and opportunities inherent in scaling mining operations. While the profit decline may raise eyebrows, the company’s strategic investments position it for potentially significant growth in production and revenue in the coming years. Investors will be watching closely to see how the ramp-up of new capacity translates into improved profitability and whether dividend payouts remain sustainable as expansion continues.
Bottom Line?
Fenix’s bold expansion bets set the stage for growth, but sustaining profits and dividends will be the next test.
Questions in the middle?
- How will Fenix manage profitability as it scales production to 4Mtpa?
- Is the dividend payout exceeding net profit sustainable in the long term?
- What impact will new mines like Beebyn-W11 have on cash flow and margins?
