Amid Challenging Conditions, BUMA International Group Shows Performance Recovery in FY2025

PT BUMA International Group Tbk has reported its audited consolidated financial and operational results for the fiscal year ended 31 December 2025 (FY2025). FY2025 performance was significantly impacted by unprecedented operational disruptions from adverse weather, as well as ramp-down and completion of contracts in Indonesia and Australia.

The performance results were also influenced by non-operational costs (non-underlying charges), including provisions for trade receivables and asset impairment in operations in Australia and the United States, partially offset by a fair value gain of US$41 million on the Group’s investment in 29Metals.

Despite these factors weighing on full-year performance, the Group recorded consistent operational recovery throughout the year, supported by structural improvements in productivity and lower unit costs. The Group also generated positive free cash flow, with 4Q25 recording the highest quarterly free cash flow of the year. Additionally, the Group strengthened its liquidity position thanks to ongoing support from banking partners and bondholders throughout 2025, and entered 2026 with a more balanced debt maturity profile.

FY2025 PERFORMANCE

Overburden removal volume fell 19% year-on-year (YoY) to 439 million bank cubic metres (MBCM), while coal production declined 6% to 84 million tonnes (MT), reflecting disruptions in the first quarter, weather constraints, and lower contributions from sites undergoing ramp-down and those that have completed operations.

Revenue decreased 16% YoY to US$1.48 billion, primarily due to lower volumes, while the average selling price (ASP) for mining contractors remained relatively stable (-1% YoY), supported by a higher proportion of rise-and-fall contracts. EBITDA fell to US$175 million with a 14% margin, influenced by lower volumes, higher redundancy costs, and increased fuel expenses. Excluding redundancy costs, EBITDA was recorded at US$207 million with a 17% margin.

The Group recorded a net loss of US$128 million, driven by the decline in EBITDA, provisions for trade receivables from ended contracts in Australia, and asset impairments in operations in Australia and the United States. These factors were partially offset by a fair value gain of US$41 million from the Group’s investment in 29Metals, in line with the recovery in its share price throughout the year, a foreign exchange gain of US$36 million (reversing from a US$19 million loss in FY24 to a US$17 million gain in FY25), and the reversal of provisions for receivables in Australia following a Queensland Supreme Court ruling in favour of BUMA Australia, with financial settlement expected in 2026.

The Group booked positive free cash flow of US$8 million, compared to negative US$60 million in FY2024. In 4Q25 alone, the Group recorded free cash flow of US$57 million, making it the highest quarterly free cash flow achievement of the year. Capital expenditure remained disciplined at US$179 million, relatively stable YoY, with balanced allocation between maintenance and growth needs.

The Group’s operational performance improved progressively throughout the year, supported by stronger execution and cost discipline. Structural improvements at BUMA Indonesia drove consistent quarter-on-quarter increases, with overburden removal rising from 76 MBCM in 1Q25 to 79 MBCM in 4Q25. This increase was supported by targeted improvements in planning, more disciplined shift execution, maintenance implementation, and resolution of operational bottlenecks. From January 2025 to January 2026, equipment utilisation hours increased by 6%, downtime decreased by 31%, non-productive hours fell by 17%, and cycle time improved by 3%, resulting in lower unit costs, dropping from US$2.22/BCM in 1Q25 to US$1.83/BCM in 4Q25.

At the Group level, these improvements resulted in progressively stronger financial performance, with EBITDA rising from US$14 million in 1Q25 to US$48 million in 4Q25, reflecting strong sequential improvement throughout the year.

“FY2025 was a challenging year for the Group. The disruptions we faced in the first quarter had a significant impact on production and revenue, while also highlighting areas where our approach can be strengthened. We responded quickly by tightening operational discipline, strengthening cost controls and maintenance fundamentals, and taking decisive steps to maintain liquidity and bolster the balance sheet. These measures drove improvements in productivity, costs, and cash flow throughout the year, providing a stronger foundation as we enter 2026,” said BUMA International Group Director, Iwan Fuad Salim.

LIQUIDITY AND BALANCE SHEET

During FY2025, the Group completed several funding initiatives to strengthen liquidity and extend its debt maturity profile. In February, PT Bank Central Asia Tbk joined PT Bank Negara Indonesia (Persero) Tbk and PT Bank Mandiri (Persero) Tbk in a US$1 billion syndicated facility, expanding the Group’s funding base. In March, the Group issued Sukuk Ijarah worth Rp2 trillion (US$121.7 million), the largest single-issue A+-rated Sharia Corporate Ijarah Sukuk in Indonesia, followed by the issuance of BUMA 2025 Phase III Bonds worth Rp884 billion (US$53.8 million) in October. In November, the Group early redeemed Senior Notes prior to maturity worth US$212 million, enhancing liquidity and capital structure flexibility.