Champion Iron posts record iron ore sales and profits in Q3 FY26

The Champion Iron Ltd (ASX: CIA) share price is in focus today as the miner delivered record quarterly sales of 3.9 million tonnes and posted net income of $65 million for the three months to 31 December 2025.

What did Champion Iron report?

• Quarterly revenue of $472 million, up 30% year-over-year
• Net income of $65 million; earnings per share of $0.12
• EBITDA of $152 million, up 73% from the prior-year period
• Record iron ore sales of 3.9 million dry tonnes, an 18% increase
• C1 cash cost per tonne lowered to $73.9, down 6% from a year ago
• Cash balance (excluding restricted funds) of $245 million at quarter-end

What else do investors need to know?

Champion Iron is advancing its DRPF project at Bloom Lake to produce direct reduction pellet feed iron ore, with commissioning underway and first shipments expected by the end of June 2026. The company also reduced site stockpiles by 1.1 million tonnes during the quarter, despite some logistical setbacks, and maintains strong liquidity of $751 million to fund growth and operations.

In December, Champion announced a cash tender offer to acquire Norwegian iron ore producer Rana Gruber for around US$289 million, backed by La Caisse and Scotiabank. This deal would broaden the company’s high-grade iron ore portfolio. Work on the company’s Kami Project definitive feasibility study, in partnership with Nippon Steel and Sojitz, also continues with completion targeted for year’s end.

What did Champion Iron management say?

CEO David Cataford said:

I am proud of our team’s ingenuity and perseverance as we advance strategic initiatives designed to unlock value for our stakeholders in the coming months and reinforce our leadership in the high-purity iron ore industry. We expect to continue to benefit from sales of high-purity iron ore inventories previously stockpiled at Bloom Lake. New markets will become available as we initiate shipments of DR quality iron ore from our DRPF project in the near term. Additionally, we remain focused on the potential closing of the Rana Gruber acquisition, which will diversify our portfolio with another proven high-purity iron ore operation, as well as the anticipated completion of the Kami project definitive feasibility study, leveraging our partnership with Nippon Steel and Sojitz. As our multi-year growth capital investment cycle at Bloom Lake nears completion, we continue to rigorously evaluate growth opportunities and capital allocation strategies to optimize shareholder returns.

What’s next for Champion Iron?

Champion’s near-term priority is completing the DRPF project at Bloom Lake, targeting first commercial shipments of DR-quality iron ore by the middle of 2026 to tap new market opportunities. The company also aims to finalise the Rana Gruber acquisition, expanding its asset base and diversifying production locations.

Investors can also keep an eye on the progression of the Kami Project’s feasibility study and management’s strategy to optimise inventory management and capital allocation as the Bloom Lake expansion cycle winds down.

Champion Iron share price snapshot

Over the past 12 months, Champion Iron shares have risen 8%, running slightly ahead of the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Champion Iron posts record iron ore sales and profits in Q3 FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.