Kumba Iron Ore posts $4.4 billion in 2025 revenue, expands margins

Kumba Iron Ore, the world’s fifth-largest iron ore supplier, led by South African executive Mpumi Zikalala, has delivered resilient financial results with revenue reaching $4.4 billion for the year ended December 31, 2025.  

The South African mining giant reported strong margins, disciplined capital allocation, and a total cash dividend of nearly $2 per share despite a volatile global trade environment. 

Revenue growth driven by pricing
According to its audited annual report, the iron ore producer generated revenue of R70.1 billion ($4.36 billion) in 2025, up 2 percent from R68.5 billion ($4.26 billion), supported by a 12 percent premium to benchmark pricing and an average export price of $95 per wet metric tonne. 

Adjusted EBITDA rose to R31.9 billion ($1.99 billion), lifting the margin to 46 percent from 41 percent a year earlier. Headline earnings per share climbed 18 percent to R45.97 ($2.86), while free cash flow declined 17 percent to R12 billion ($748.06 million). Return on capital employed improved to 46 percent, reflecting disciplined capital allocation.

Margins expand on capital discipline
Chief Executive Mpumi Zikalala, who has been steering Kumba’s business since 2022, said the results reflect the resilience of Kumba’s operating model. “Kumba delivered a solid performance marked by improved realised prices, marginal sales growth and disciplined capital allocation,” she noted, highlighting the company’s focus on unlocking long-term value through its ultra-high dense media separation (UHDMS) technology investment.

Production increased 1 percent to 36.1 million tonnes, while export sales rose 2 percent to 37 million tonnes. A 7 percent output gain at Kolomela offset a slight decline at Sishen.

Dividend strength reflects cash resilience
The board declared a final dividend of R15.43 ($0.96) per share, bringing total 2025 dividends to R32.03 ($1.99) per share, equivalent to a 70 percent payout ratio.

This amounts to R10.31 billion ($640.78 million), reflecting the company’s commitment to delivering value to its investors despite a challenging year, during which it saw a slight 0.61% drop in profitability.

Strategic leadership and long-term value creation
Under Zikalala’s leadership, Kumba, headquartered in Gauteng with primary operations in South Africa, Northern Cape and a port operation in Saldanha Bay, Western Cape, continues to assert its position as Africa’s largest iron ore producer and the world’s fifth-largest with a market capitalization reaching R118 billion ($7.36 billion). Total assets increased by over 5 percent from R98.75 billion ($6.15 billion) to R103.71 billion ($6.46 billion), while the ore giant went from an accumulated loss of R82 million ($5.11 million) to R668 million ($41.6 million).

Beyond financial performance, Kumba reported nine consecutive fatality-free years at Sishen and two at Kolomela, alongside a 4 percent reduction in freshwater withdrawals.

A member of Anglo American plc, Kumba closed the year with net cash of R14.9 billion ($929.05 million), reinforcing its balance sheet strength and positioning the group for sustained shareholder returns amid fluctuating iron ore markets.

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