Kumba Iron Ore retained earnings 2025

Kumba Iron Ore, the world’s fifth-largest iron ore supplier, led by South African executive Mpumi Zikalala, reported a decisive earnings recovery in 2025, restoring retained earnings to $42 million after reversing an accumulated loss recorded a year earlier.

The South African iron ore producer, majority owned by Anglo American plc, improved profitability through disciplined capital allocation and returned over $640 million in dividends to shareholders in 2025.

The company, according to its audited full-year 2025 report, closed the year with retained earnings of R668 million ($41.6 million), compared with an accumulated deficit of R82 million ($5.11 million) in 2024. The rebound reflects stronger export pricing, stable production volumes and tighter cost control.

Earnings rebound in 2025
Improved operating margins supported the earnings turnaround as iron ore pricing stabilized across key export markets. Management maintained strict capital discipline while preserving shareholder returns. The board has also 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.

Asset growth strengthens balance sheet
Total assets rose more than 5 percent to R103.71 billion ($6.46 billion), up from R98.75 billion in 2024. The increase underscores balance sheet expansion alongside earnings recovery. 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.

Operational discipline drives performance
The recovery was supported by cost efficiencies across its mining portfolio in South Africa’s Northern Cape and export operations at Saldanha Bay. Pricing resilience and steady production underpinned financial improvement.

Outlook for Iron Ore markets
The strengthened balance sheet enhances financial flexibility, supporting dividends and capital projects while navigating global demand volatility linked to infrastructure spending and trade conditions.

Kumba remains Africa’s largest iron ore producer, ending 2025 in a materially stronger financial position.