ITMG posts 17% profit growth to $110 million in H1

By Romel S. Gurky

Coal mining group PT Indo Tambangraya Megah Tbk (IDX: ITMG) recorded revenue of US$1 billion in the first six months of 2026, up 9% from US$919 million in the same period last year, while net profit rose 17% year-on-year to US$110 million.

The revenue growth was supported by a 5% increase in coal sales volume to 12.3 million tons from 11.7 million tons and a 4% increase in average selling price to US$81 per ton from US$78 per ton.

Coal production, however, declined 5% to 9.9 million tons from 10.4 million tons in 6M25. The company's own coal sales increased 11% to 10.5 million tons, while third-party coal sales fell 20% to 1.8 million tons. The strip ratio rose 12% to 10.3 times from 9.3 times.

In the second quarter, ITMG's coal production increased 13% from the previous quarter to 5.3 million tons.

Gross profit increased 14% to US$256 million, while operating profit rose 14% to US$142 million. EBITDA increased 11% to US$181 million. The net profit margin improved to 11% from 10% a year earlier.

Cost of revenue increased 7% to US$744 million, mainly due to higher mining and coal transportation costs resulting from a higher strip ratio and increased fuel costs. Selling expenses rose 9% to US$88 million, while general and administrative expenses increased 40% to US$26 million.

By market, export revenue increased in several key destinations. Revenue from China rose 11% to US$271 million, Japan increased 32% to US$269 million, the Philippines rose 137% to US$104 million and Thailand increased 287% to US$42 million. Domestic revenue declined 15% to US$175 million, while revenue from India fell 66% to US$39 million.

ITMG's total assets stood at US$2.42 billion as of June 30, 2026, broadly unchanged from the end of 2025. Cash and cash equivalents stood at US$738 million, while short-term deposits reached US$66 million. Total liabilities increased slightly to US$506 million, while equity stood at US$1.91 billion.

Net cash generated from operating activities fell to US$62 million from US$281 million in 6M25, mainly due to lower tax refund receipts and higher supplier payments. Meanwhile, net cash used in financing activities declined 25% to US$136 million.

ITMG said it continues to develop its portfolio in renewable energy and strategic minerals alongside its thermal coal business.

ITMG operates several coal mine in East, Central and South Kalimantan including PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, and PT Jorong Barutama Greston.

Editing by Alexander Ginting