Iofina Reports Record 2025 Results: Production, Revenue, and EBITDA Soar; Permian Basin Expansion Underway

Iodine derivatives sales also improved, but more modestly, up 5% to $17.8 million. Non-iodine product sales went the other way, down 8% to $7.2 million, mainly due to lower demand for etchant gas. So this was very much an iodine-led performance.

IO#11 commissioning and steady iodine prices boosted margins

The new IO#11 plant was commissioned in July 2025 and completed on time and within its $5.3 million budget. That helped power a very strong second half, with record production of 437.6 MT across H2.

Average realised iodine price rose 8% to $74.02/kg, while the iodine spot price stayed above $70/kg through the year. That pricing backdrop matters because iodine is still a relatively tight market, and Iofina is benefiting from that without seeing production costs run away. In fact, the average production cost per kilogram across all plants was only 2% higher than in 2024.

That is the sweet spot for this business: more output, firm pricing, and only limited cost inflation. When you get all three at once, profit can move fast.

Iofina balance sheet strength gives the Permian Basin plan real credibility

For me, one of the most encouraging bits of this update is the balance sheet. Cash ended the year at $11.7 million, while net cash improved to $5.2 million, excluding lease liabilities.

That happened despite $8.4 million of capital investment during the year. In other words, Iofina is still growing, still building, and still finishing the year with more cash than it started with. That is a good place to be.

There was also a one-off benefit from $2.1 million of government payroll subsidies under the Employee Retention Tax Credit scheme. Statutory profit before tax was $10.5 million including that benefit, but the company sensibly highlights $8.4 million excluding subsidies. I prefer looking at the ex-subsidy number, and even that was up 75% year on year.

One small caution point: inventories ended 2025 lower than ideal, and the company says that will reduce the amount of material available for sale at the start of 2026. Trade receivables also rose sharply to $18.9 million from $11.9 million, largely because of timing of sales receipts. Neither screams trouble, but they are worth watching.

Permian Basin expansion could be a genuine step-change for Iofina growth

This is where the story gets more interesting. In December 2025, Iofina signed an agreement with Western Midstream Partners for a larger IOsorb plant in the Permian Basin, with operations expected to start in Q3 2026.

Western Midstream will supply up to 50,000 barrels of produced water per day. Produced water is the brine wastewater that comes up during oil and gas production. Iofina extracts iodine from that waste stream, which is clever commercially and easier to like from an environmental point of view than digging new ore out of the ground.

The new Permian plant is expected to produce between 170 MT and 220 MT of crystalline iodine annually, at an estimated capital cost of $8 million to $9 million. That is important because it is larger than the Oklahoma plants and points to better capital efficiency if the model works as hoped.

In plain English, this is not just another plant. It is the start of a new operating hub, outside Oklahoma, with room for follow-on projects. That reduces concentration risk and could meaningfully raise the pace of growth.

Iofina 2026 outlook looks strong, but iodine price and brine supply still matter

The company says it has had a strong start to 2026 and now expects H1 crystalline iodine production to be around 385 MT, upgraded from previous guidance of 325 MT to 355 MT. It also says the first Permian Basin plant is under construction and on time and on budget.

Management believes the business is close to achieving 1,000 MT of annualised crystalline iodine production once the Permian plant comes online. Beyond that, the Board is talking about a pathway to more than 2,000 MT in the coming years through multiple larger plants. Ambitious, yes, but not fantasy given the current build-out pace.

The main risks are the usual ones for a producer like this. Iodine prices need to stay supportive, brine supply from partners needs to remain reliable, and tariffs could still complicate sourcing or sales in some markets. The company was also pretty open that additional tariffs have made sales into China essentially unattainable.

What I think this Iofina RNS means for retail investors

This was a very good update. Not perfect, and not risk-free, but very good.

The core business is growing nicely, margins are improving, the balance sheet looks healthier, and the next growth leg is already being built. Best of all, the strategic story is now backed by proper delivery. Iofina is no longer just saying it can scale its iodine extraction model. It is showing it.

The other point I would make is that there is still no dividend recommended. That will not bother every investor, but it tells you management is still firmly in build mode. If the Permian expansion lands well, that should be the right call.

Overall, this RNS reads like a company moving from solid small-cap operator into a more serious growth phase. For shareholders, that is exactly what you want to see.