Australian miner Pilbara Minerals has posted a full-year loss after a sharp drop in lithium prices eroded margins, even as the company delivered record output from its flagship Pilgangoora operation in Western Australia.

The firm on Monday reported a statutory net loss after tax of A$196-million for the 12 months to June 30, 2025, compared with a profit of A$257-million a year earlier. Revenue fell 39% to A$769-million as average realised prices slid 43% to $672/t basis, partly offset by a 7% increase in sales.

Underlying earnings before interest, taxes, depreciation and amortisation dropped 83% to A$97-million, while cash reserves declined to A$1-billion from A$1.6-billion a year earlier after heavy investment in expansion projects.

“FY25 marked a transformational year for PLS. While the lithium market experienced material pricing pressure, we maintained strong operational performance, completed a major phase of capital investment, and positioned the business for the next phase of growth,” MD and CEO Dale Henderson said.

Production rose 4% to a record 755 000 t, supported by the completion of the P680 and P1000 expansion projects. The company also acquired Latin Resources to gain exposure to Brazil’s Colina project and injected A$40-million into its Posco joint venture in South Korea.

Despite the loss, Henderson stressed the miner’s balance sheet resilience, citing a closing liquidity position of A$1.6-billion. “Despite the softer pricing environment, our balance sheet remains robust. We closed the year with approximately $1.0-billion in cash and $1.6-billion in total liquidity, supported by a strong operating cash margin and disciplined capital management,” he said.

Pilbara Minerals flagged further cost reductions in FY26 through its expanded “Cost Smart” programme as it seeks to withstand continued volatility in the lithium market. “The long-term fundamentals for lithium remain intact. Current prices are not sufficient to incentivise new supply, which points to potential tightness ahead,” Henderson said.