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Iofina PLC reports record H1 2025 revenue of $29.2m and a 218% surge in profit, driven by strong iodine prices and production growth.
This article covers information on Iofina PLC.
LON:IOFIofina’s H1 2025 numbers show a business leaning into strong iodine markets and delivering on its growth plan. Revenue hit a record $29.2 million, up 12.3% year on year, while gross profit rose 21.2% to $6.3 million as pricing and volumes both improved.
Adjusted EBITDA climbed 43.5% to $3.3 million and operating profit was $1.8 million, up 63.3%. Profit before tax surged 218% to $3.5 million, helped by $1.8 million of US Employee Retention Tax Credits (ERTC) recognised in “Other income”. Strip those out and underlying profit before tax was $1.66 million – still up 56% on H1 2024. Basic EPS came in at $0.013 (H1 2024: $0.003); excluding subsidies, EPS was $0.006.
Iofina produced 305.5 metric tonnes of crystalline iodine in H1 2025, a 10.6% increase versus H1 2024 and within the company’s revised target range despite extreme winter weather in Q1. Crystalline iodine sales volumes rose 9% to 208 MT, and average realised prices increased 11% to $74.27 per kg (H1 2024: $66.84).
Iodine derivative sales – chemicals made from iodine – grew 16% to $9.2 million, supported by a new animal feed additive launched in January. Non-iodine sales fell to $3.1 million, largely due to a $1.35 million order that slipped into July. Production costs per kg were 5% higher year on year, reflecting inflation and the Q1 weather disruption, but the pricing tailwind more than offset this, lifting gross margin to 22% (H1 2024: 20%).
The growth engine is the group’s modular IOsorb plants that extract iodine from oil and gas brine streams. IO#11, the eighth plant, was completed on time and on budget in July and is expected to add around 100 MT per year on an annualised basis. August set a new monthly production record at 74.3 MT, which bodes well for H2.
Negotiations for IO#12 are progressing, with construction expected to begin before the calendar year-end. Management guides to H2 2025 production of 400-440 MT of crystalline iodine – which would be a company record – and expects iodine prices to remain firmly above $70/kg.
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Cash at 30 June was $6.4 million (H1 2024: $5.7 million). Net bank debt was $0.8 million versus net cash of $1.1 million a year ago, reflecting $5.3 million of capex in the half, including $3.7 million on IO#11 and $0.6 million on landowner leases. Iofina drew $4.0 million from its $10 million project loan facility to fund this investment.
Operating cash inflow was $1.7 million (H1 2024: $4.9 million) after a $1.4 million inventory build. Beyond the project loan, the group retains a $6.0 million revolving credit facility that was undrawn at period end and a term loan with $3.2 million outstanding. Covenants look sensible for a growing industrial – maximum 2.5x total debt to EBITDA and minimum 1.2x debt service coverage.
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | $29.2 million | $26.0 million | +12.3% |
| Gross profit | $6.3 million | $5.2 million | +21.2% |
| Adjusted EBITDA | $3.3 million | $2.3 million | +43.5% |
| Operating profit | $1.8 million | $1.1 million | +63.3% |
| Profit before tax | $3.5 million | $1.1 million | +218% (incl. $1.8m ERTC) |
| Crystalline iodine production | 305.5 MT | Not disclosed | +10.6% vs H1 2024 |
| Avg. iodine price | $74.27/kg | $66.84/kg | +11% |
| Cash | $6.4 million | $5.7 million | +12% |
| Net debt/(cash) | $0.8 million | $(1.1) million | Change due to capex |
Two things stand out. First, the company is scaling production while keeping prices strong – a powerful combination in a commodity-adjacent business. Second, the cash and facilities in place mean Iofina can keep building new IOsorb plants without stretching the balance sheet, which should support a step-up in H2 output and beyond.
The $1.8 million ERTC cash is a welcome, but non-recurring, boost. After tax of around $0.44 million, the net benefit is about $1.4 million. Even when you back that out, underlying profitability moved up nicely thanks to more tonnes and higher realisations.
Management expects iodine spot prices to remain firmly above $70/kg and believes the group is on track to meet full-year market expectations. With IO#11 ramping and IO#12 planned to start construction before year-end, the network effect of more plants should support higher sustained volumes.
This is another tidy set of numbers from Iofina. The business is doing the simple things well – producing more iodine, selling it at higher prices, and using cash and bank lines to add capacity. The H2 production guide is bold, but August’s record month suggests the plants are performing to plan.
There are always risks in a brine-dependent model and the one-off tax credit flatters the PBT headline. Even so, the underlying trend is up and to the right. If IO#11 and IO#12 bed in smoothly while prices stay above $70/kg, Iofina has a clear path to further scale and improved cash generation.
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