Iofina (AIM:IOF) reported record first-half revenue of $31.3m, up 7% on the $29.2m recorded in the same period last year, as adjusted EBITDA more than doubled to $6.6m.
The AIM-listed iodine producer and specialty chemicals manufacturer, which extracts iodine from oil and gas brine waste streams in Oklahoma, saw gross profit jump 62% to $10.2m, lifting its margin to 33% of sales from 22% a year earlier.
Crystalline iodine production rose 29% to 393.3 metric tonnes, beating the company's upward-revised target of 385 tonnes, while crystalline iodine sales grew 21% to 253 tonnes on stable average prices of $74.69 per kilogram.
Profit before tax rose 196% on an adjusted basis to $4.9m, excluding a one-off $1.8m Employee Retention Tax Credit received in the prior-year period. The Group moved to a net cash position of $7.2m, from net debt of $0.8m a year earlier, after funding $5.8m of capital expenditure entirely from operating cash flow.
"The Group is strategically placed and is fulfilling its targeted business plan by executing aggressive expansionary initiatives, utilising its strong cash generation and favourable banking facilities to invest for growth," said Dr Tom Becker, President and CEO.
The IO#12 plant, Iofina's ninth and first in the Permian Basin, is on track for completion near the end of the third quarter with expected annual output of 170-220 tonnes. Two further plants, IO#13 and IO#14, are due online by the end of the first half of 2027 as the Group targets 2,000 tonnes of annual crystalline iodine production.
The Board said it expects to produce 460-485 tonnes of crystalline iodine in the second half and remains on track to meet full-year market expectations.
News Intelligence what this means for the company
Iofina doubled adjusted EBITDA to $6.6m in H1 2026 on record $31.3m revenue, driven by a 29% jump in crystalline iodine production to 393.3 tonnes and a 62% surge in gross profit as margin expanded to 33% from 22%. The company swung to net cash of $7.2m and funded $5.8m of growth capex entirely from operating cash flow, positioning itself to meet its 2,000-tonne annual production target via three new plants coming online through H1 2027.
The margin expansion—from 22% to 33% gross margin—is the story: production scale and stable iodine pricing at ~$75/kg have unlocked operating leverage that more than doubled profit before tax on just 7% revenue growth. With IO#12 due in Q3 2026 and a US$10.0 million project loan facility finalising to support its 2,000 tonnes per annum target, the company has both the cash generation and financing to execute its expansion without equity dilution, materially de-risking the path to its stated production goal.
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