BUMA International Group reports improved Q1 2026 results

PT BUMA International Group Tbk recorded improved company performance for the first quarter ending 31 March 2026 (Q1 2026), reflecting continued recovery from operational challenges faced in Q1 2025.

According to BUMA International Group Director Iwan Fuad Salim, the performance was supported by structural improvements in productivity, unit costs, and operational discipline.

“Q1 2026 shows that the recovery we built throughout 2025 continues despite the seasonally challenging quarter,” he said in a statement on Sunday in Jakarta.

Operational improvements in Q1 2026, he added, continued the trend established throughout 2025. In Indonesia operations, non-productive hours fell by 14% due to addressing slippery conditions from rain and obstacles in disposal areas, haul roads, and geological conditions.

Bank cubic metre (BCM) productivity per hour rose 1% year-on-year (YoY), alongside a 1% YoY reduction in cycle time, supported by improved haul road conditions and reduced queuing time.

Unit cost per BCM fell 1% YoY, reflecting sustained cost discipline. Labour cost per BCM decreased 4% YoY, driven by continued shift discipline and more efficient operator allocation, with the operator-to-equipment ratio down 3% YoY.

Fuel cost per BCM rose 3% YoY, entirely due to higher fuel prices, while consumption per BCM remained stable, reflecting consistent fleet efficiency.

Repair and maintenance cost per BCM increased 13% YoY, as part of a planned acceleration of maintenance activities to maximise equipment readiness for the drier operational period in the second and third quarters.

Looking at developments after Q1, Iwan said operational recovery continued into April, reflected in higher volumes, supported by stronger execution and improving weather conditions.

Monthly combined Indonesia and Australia overburden removal volumes rose from 26.4 million bank cubic metres (MBCM) in February to 30.4 MBCM in March and 34.3 MBCM in April.

Coal production reached 5.9 million tonnes (MT) in April, approximately 16% and 22% above the Q1 2026 monthly average.

However, overburden removal volume fell 12% YoY to 89 million bank cubic metres (MBCM), while coal production declined 20% YoY to 15 million tonnes (MT).

The volume decline primarily reflects the conclusion of contracts at Indonesia’s Binungan site and Australia’s Burton site, along with ramp-down at two Indonesian sites in 2025. Operating sites remained stable.

Revenue was recorded at $318 million, down 10% YoY, in line with a smaller active portfolio.

The mining contractor business’s average selling price (ASP) rose 3% YoY, supported by a higher proportion of rise-and-fall contracts and tiered rate increases linked to coal prices.

EBITDA increased 98% YoY to $28 million from $14 million in Q1 2025, with EBITDA margin rising to 11% from 5% in Q1 2025.

The company reported a net loss of $24 million, compared with a $70 million net loss in Q1 2025.

This 66% YoY improvement, he added, reflects EBITDA recovery and three non-operational factors: a $12 million gain from ongoing ACG portfolio optimisation through land asset sales; a $12 million reduction in investment losses from 29 Metals; and the non-recurrence of a $4 million bad debt provision recorded in Q1 2025.

Capital expenditure was $20 million, allocated to maintaining fleet reliability and operational sustainability.

Free cash flow turned positive at $2 million, compared with a negative $19 million in Q1 2025.