FY 2025 headline: profits surge, but driven by investments
Capital Limited has posted a striking jump in statutory profit for 2025, while operational performance was steady to mixed. Revenue dipped 0.6% to $345.8 million, but Adjusted EBITDA edged up 1.1% to $79.5 million with a stronger 23.0% margin.
The big swing factor was the investment portfolio. Gains of $66.0 million helped lift Net Profit After Tax (NPAT) to $71.0 million, up 317.6% year on year. Strip out investment gains and exceptionals, and Operational NPAT was $12.4 million, down 3.9%.
Key numbers at a glance
| Metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Revenue | $345.8 million | $348.0 million | (0.6%) |
| Adjusted EBITDA | $79.5 million | $78.6 million | 1.1% |
| Operating profit | $46.6 million | $37.9 million | 23.0% |
| Investment gain | $66.0 million | $12.1 million | 445.5% |
| NPAT | $71.0 million | $17.0 million | 317.6% |
| Operational NPAT | $12.4 million | $12.9 million | (3.9%) |
| Adjusted cash from operations | $92.9 million | $77.1 million | 20.5% |
| Capex | $47.1 million | $67.2 million | (29.9%) |
| Net debt | $31.8 million | $75.7 million | (58.0%) |
| Final dividend per share | 1.3 cents | 1.3 cents | – |
What actually drove the result
The investment book did the heavy lifting. The portfolio’s value rose to $97.5 million at year end (from $30.3 million), delivering $66.0 million of gains. That is the principal reason EPS jumped to 34.9 cents, even though Operational EPS eased to 5.4 cents.
Operationally, the Group protected margins. Adjusted EBITDA margin improved to 23.0% despite largely flat revenue. Cash generation was healthy, with Adjusted Cash from Operations up 20.5% to $92.9 million. Capex stepped down to $47.1 million, and net debt fell to $31.8 million. Note that net debt excludes the $97.5 million investment portfolio.
Divisional check-in: drilling steady, mining rebuilding, labs flying
Capital Drilling – bigger fleet, slightly softer pricing mix
- Fleet grew to 137 rigs from 130, with utilisation at 74% (FY 2024: 73%).
- Average monthly revenue per operating rig (ARPOR) was $191,000, down 6.4% from $204,000. ARPOR is a useful gauge of pricing and mix per working rig.
- Recent wins include long-term work with Montage Gold in Côte d’Ivoire, additional grade control work at Nevada Gold Mines in the USA, a diamond contract in Gabon and new exploration work with Santa Fe Minerals in Côte d’Ivoire.
Capital Mining – preparing for a stronger 2026
- Revenue from Mining was $26.357 million (FY 2024: $65.242 million) as projects transitioned.
- Sukari Gold Mine: an 18-month waste stripping cutback has commenced, using onsite equipment plus new trucks.
- Reko Diq: early-stage civils began in April 2025 and is running double shift. The tailings storage facility fleet is on site with commissioning underway. Full run-rate is expected in H2 2026.
MSALABS – record year and still expanding
- MSALABS delivered $73.5 million revenue (FY 2024: $43.7 million) and contributed positively to Group profitability.
- New labs commissioned in Fairbanks (Alaska), Elko (Nevada), Jabal Sayid (Saudi Arabia) and Omaruru (Namibia).
- Announced a mine-site lab for Montage Gold in Côte d’Ivoire, a commercial lab in Newfoundland, Canada underpinned by a 5-year contract with Equinox Gold, and a second commercial lab in Côte d’Ivoire.
- The first stage of the Nevada Gold Mines lab, equipped with Chrysos PhotonAssay technology, is operating at planned capacity.
Outlook for 2026: growth re-accelerates
Management guides to revenue of $410 – 440 million for 2026, a 23% uplift at the midpoint. The drivers are clear: Reko Diq reaching full run-rate in H2, continued ramp-up at Sukari, an expanding MSALABS footprint and a healthy pipeline in drilling.
- MSALABS revenue guidance: $85 – 95 million with ongoing contributions to Group earnings.
- Group capex planned at $55 – 65 million to fund Sukari equipment, new labs, growth rigs and sustaining spend.
- Strategy: broaden drilling across key growth areas while consolidating into preferred markets.
Balance sheet, liquidity and dividend
Capital ended 2025 with cash of $63.4 million and total loans and borrowings of $94.8 million. Net debt fell to $31.8 million, backed by strong operating cash flow and lower capex. In March 2026, the revolving credit facility was refinanced into a $37.5 million term loan maturing in March 2029 and a $37.5 million revolving facility maturing in March 2030.
The final dividend is 1.3 cents per share, taking the total for 2025 to 2.6 cents. Shareholders can elect to receive GBP, with the USD/GBP rate set on 20 April 2026.
Dividend timetable
- Ex-dividend date: 16 April 2026
- Record date: 17 April 2026
- Last date for currency elections: 20 April 2026
- Payment date: 12 May 2026
Safety and ESG notes
Safety performance remains strong. The Total Recordable Injury Frequency Rate (TRIFR) was 1.20 per 1,000,000 hours worked, in line with the 5-year average. That matters for win rates, client relationships and cost of delivery.
Why this matters for investors
What looks positive
- Clear 2026 growth path: guidance of $410 – 440 million, with large mining contracts ramping and MSALABS scaling.
- Cash generation: Adjusted Cash from Operations of $92.9 million and a reduced net debt position of $31.8 million.
- Diversification: drilling, mining, and labs provide multiple growth levers. The investment portfolio at $97.5 million offers added flexibility.
- Contract momentum: multiple new drilling awards and the Sukari and Reko Diq programmes in motion.
What to watch
- Quality of earnings: the 2025 NPAT surge was driven by $66.0 million of investment gains. Operational NPAT fell 3.9% and Operational EPS declined 11.6%.
- Mining revenue gap: Mining revenue decreased to $26.357 million in 2025. Delivery on the H2 2026 full run-rate at Reko Diq and the Sukari ramp-up is key.
- Drilling pricing mix: ARPOR fell 6.4% to $191,000. Sustaining utilisation and pricing will be important for margins.
- APMs and exceptionals: there were ERP-related costs of $3.9 million and impairments relating to an associate of $5.7 million. Keep an eye on further one-offs as systems bed in.
- Portfolio volatility: a $97.5 million investment book can boost earnings, but it can move both ways.
My take
This is a transition year well navigated. Core operations held margins, MSALABS delivered a breakout year, and net debt came down sharply. The outsized profit print owes a lot to investment gains, so I would focus on the 2026 operational re-acceleration as the truer test of earnings power.
If management lands the Reko Diq and Sukari ramps on time and MSALABS hits guidance, the revenue step up looks achievable. Drilling remains the cash-generative backbone, so stabilising ARPOR while keeping utilisation in the mid-70s would be a tidy outcome. Overall, a constructive set-up heading into 2026, with delivery now the name of the game.
