Iofina PLC Reports Record H1 2025 Revenue and 218% Profit Surge

Record revenue, fatter margins and a punchy profit jump

Iofina’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.

Iodine production up double digits and pricing stays firm

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%).

Expansion continues – IO#11 online and IO#12 in the works

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.

Cash, debt and capex – funding the build-out

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.

Headline results at a glance

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

Why this matters for shareholders

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.

The good and the not-so-good

Positives driving the story

• Volume and price both up – 305.5 MT produced and $74.27/kg realised price.
• IO#11 commissioned on time and budget, with August setting a production record of 74.3 MT.
• Adjusted EBITDA margin improved to 11% of sales (H1 2024: 9%).
• Healthy liquidity – $6.4 million cash, undrawn $6.0 million revolver, and project loan headroom.
• H2 guidance of 400-440 MT suggests another record period if delivered.

Watch-outs to keep in mind

• Operating cash flow dipped to $1.7 million due to inventory build – worth tracking into H2.
• Net cash shifted to modest net debt of $0.8 million as capex accelerated.
• Unit costs were 5% higher, with weather a factor – storms or freeze-ups can affect brine flows.
• ERTC is one-off – future profits will need to come from operations, not subsidies.
• Non-iodine sales fell after a timing delay – now recorded in July, but underlines order lumpiness.

Outlook and key catalysts for H2 2025

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.

What I will be watching next

• Delivery against the 400-440 MT H2 production target.
• Further cost performance now the winter disruption has passed.
• Sales mix between crystalline iodine and higher-margin derivatives, including the new animal feed product.
• Capex and funding cadence for IO#12 and beyond – the $10 million project facility still has headroom.
• Impact of the post-period capital reduction that created distributable reserves.

Josh’s take

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.