South32 grows output and returns cash: December 2025 quarterly earnings update

The South32 Ltd (ASX: S32) share price is in focus after the diversified miner delivered a solid Quarterly Report for December 2025, highlighting production growth in key assets and continued strong financial discipline.

What did South32 report?

• Alumina production rose 3% to 1,893kt for the December 2025 half year, with Brazil Alumina achieving record results.
• Aluminium production lifted 2% to 362kt, as Hillside Aluminium reached full technical capacity.
• Manganese production jumped 58% in the half, led by recovery at Australia Manganese.
• Received US$240 million in net distributions from equity interests, including US$180 million from Sierra Gorda.
• Returned US$152 million to shareholders via fully-franked dividends and share buy-backs.
• Invested US$338 million at Hermosa, progressing development of Taylor and Clark deposits.

What else do investors need to know?

South32 maintained FY26 production guidance across its operated assets, reinforcing ongoing operational consistency. For non-operated Brazil Aluminium, guidance is under review due to some ramp-up challenges, with updated production forecasts expected alongside the December half results.

The company completed the sale of Cerro Matoso, sharpening its base metals focus. Meanwhile, Mozal Aluminium will be placed on care and maintenance from March 2026, owing to power supply constraints. Several growth projects progressed, with Ambler Metals approving a fresh US$35 million work program and Hermosa making steady headway.

South32 continued its capital management program, returning most of its US$2.5 billion allocation to shareholders, now 96% complete. The company expects to finish the program ahead of the September 2026 review.

What did South32 management say?

Chief Executive Officer Graham Kerr said:

We continued to deliver consistent operating results, with FY26 production guidance maintained across our operated assets and first half operating unit costs tracking in line with guidance.

Our consistent operating performance, combined with strengthening market conditions, enabled the Group to maintain a strong financial position while investing in our high-returning growth options and delivering returns to shareholders.

Completing the divestment of Cerro Matoso during the quarter further simplified our business, consistent with our strategy to focus our portfolio on high-quality operations and growth options in base metals.

What’s next for South32?

South32 plans to maintain operational momentum, with FY26 production guidance unchanged at core assets. Investors should look out for updated guidance on Brazil Aluminium following ramp-up issues. Growth projects, including Hermosa and Ambler Metals, are progressing with significant capital investment, adding to future production and diversification.

Cost management remains a focus as the company aims to keep operating unit costs at or below guidance levels. South32’s capital management program is nearing completion, with more shareholder returns possible ahead of its September 2026 review.

South32 share price snapshot

Over the past 12 months, South32 shares have risen 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post South32 grows output and returns cash: December 2025 quarterly earnings update 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.