Whitehaven shares tumble 5% after results. Here’s what investors need to know about its dividend

Whitehaven Coal Ltd (ASX: WHC) shares are lower on Thursday after the company released its half-year FY26 results and confirmed its latest dividend.

At the time of writing, the Whitehaven share price is down 5.57% to $7.97. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently 1.1% higher.

Although profits fell on weaker coal prices, income investors will focus on Whitehaven’s latest dividend and buyback announcement.

Here’s what you need to know.

Whitehaven’s dividend at a glance

Whitehaven has declared a fully franked interim dividend of 4 cents per share.

Key dates for investors are:

• Ex-dividend date: 26 February 2026

• Record date: 27 February 2026

• Payment date: 13 March 2026

The dividend represents a cash outlay of around $32 million.

In addition, Whitehaven intends to allocate up to $32 million to an on-market share buyback. This takes the potential total capital returns for the half to about $64 million.

Why were profits weaker?

The softer result was mainly due to lower coal prices, which weighed on earnings. Benchmark thermal and metallurgical coal prices have eased significantly from the highs of the past 2 years.

For the half, Whitehaven reported:

• Revenue of $2.5 billion

• Underlying EBITDA of $446 million, down from $960 million a year ago

• Average coal price of $189 per tonne, down 19%

Production volumes were broadly steady. However, lower realised prices squeezed margins and reduced profit compared to last year.

Whitehaven also reported an underlying net loss after tax of $19 million. After including certain one-off items, statutory net profit came in at $69 million.

The balance sheet remains strong

Even with lower prices, Whitehaven’s financial position still looks healthy.

At 31 December 2025, the company had:

• $1.09 billion in cash

• $1.5 billion in total available liquidity

• Net debt of $710 million

• Gearing of 11%

It also generated $387 million in operating cash flow during the half.

Whitehaven has a solid cash buffer and manageable debt. That puts it in a position to keep returning money to shareholders, even if coal prices remain lower for a period.

What investors should take away?

Whitehaven aims to return between 40% and 60% of underlying profit to shareholders across the cycle. In the first half, capital returns were above that target range.

The share price fall today suggests investors may have expected stronger earnings or a larger dividend.

Still, the company has delivered a fully franked dividend and signalled further support through a buyback. Future payouts will depend heavily on coal prices.

The post Whitehaven shares tumble 5% after results. Here’s what investors need to know about its dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.