Evolution Mining Ltd (ASX: EVN) reported record financial results for fiscal 2026, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rising 44% year-over-year to AUD 3.2 billion. The company achieved a record EBITDA margin of 57%, up 12 percentage points from the prior year, while underlying net profit after tax climbed 63% to AUD 1.6 billion.
Group cash flow increased 76% to AUD 1.4 billion, with net mine cash flow more than doubling to AUD 2.1 billion. Earnings per share reached a record AUD 0.73, up 57%, while all-in sustaining costs (AISC) fell to AUD 1,717 per ounce. Evolution maintained a strong balance sheet with nearly AUD 1.4 billion in cash at year-end and an undrawn revolving credit facility of AUD 525 million. The company has fully repaid bank term debt and now holds a net cash position, having reduced gearing from 33% net debt to a net cash position over three years.
The miner declared a final dividend of AUD 0.21 per share, fully franked and up 62%, following an interim dividend of AUD 0.20 per share. Total full-year dividend for FY2026 reached AUD 0.41 per share, more than doubling the prior year and totalling AUD 833 million in payouts. Evolution raised its dividend payout target to 60% of annual group cash flow, up from 50%, marking the 27th consecutive dividend payment.
Asset performance varied, with Cowal and Northparkes each delivering record net mine cash flow. Red Lake achieved an underlying EBITDA margin of 62%, while Mungari reported a 65% margin following the expansion of its 4.2 million tonne-per-annum processing plant, completed 15% below budget and nine months ahead of schedule. Ernest Henry is progressing remediation work after weather-related damage.
For fiscal 2027, Evolution guided gold production between 660,000 and 730,000 ounces and copper output between 63,000 and 78,000 tonnes, with production weighted toward the second half. The company expects AISC of AUD 1,795 to AUD 1,995 per ounce, factoring in 4%-5% cost inflation and additional sustaining capital of AUD 50 million to AUD 60 million. Group cash flow is projected at AUD 3.4 billion to AUD 3.6 billion, while capital expenditure remains reaffirmed at AUD 900 million to AUD 1.1 billion annually through fiscal 2030.
Shares in Evolution Mining traded 0.81% higher at AUD 13.76, yielding 5.73% and trading at a P/E ratio of 11.71.
