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    Red Hill Minerals (ASX:RHI) Shares Trade Richly As Margins Tighten

    Simply Wall St·09/08/2026 15:35:40
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    Red Hill Minerals walked into this earnings release with the share price up only modestly in recent weeks, even after a 12 month gain that relied heavily on a sharp rebound in profit. The headline this time is not the iron ore story or top line growth. It is the squeeze in profitability, with the trailing net profit margin now at 63.6% compared with 76.9% a year ago, while the stock trades on a 15.1x P/E against an industry that sits lower. That tension between rich pricing and cooling margins is what matters most today.

    Love Red Hill Minerals for its high profitability but concerned about that squeeze in margins alongside a richer P/E tag? Take a look at our shortlist of steadier compounders in the 14 resilient stocks with low risk scores.

    FY 2026 Earnings Summary

    • Revenue (FY 2026 vs. FY 2025 PCP): A$31.56m vs. A$11.88m (very large year-on-year change)
    • Net Income (FY 2026 vs. FY 2025 PCP): A$20.06m vs. A$9.13m (119.7% higher over the last 12 months)
    • Basic EPS (FY 2026 vs. FY 2025 PCP): A$0.3127 vs. A$0.1424 (very large year-on-year increase)
    • Net Profit Margin (Trailing 12 Months vs. Prior Year): 63.6% vs. 76.9% (margin compressed)

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    ASX:RHI Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026
    ASX:RHI Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026

    Red Hill Minerals: Earnings That Support The Optimists

    For anyone leaning positive on Red Hill Minerals, the income line gives some backing. Revenue of A$31.56m and net income of A$20.06m both compare with much smaller prior year figures, which helps explain why trailing net profit margins still sit at 63.6%. Profitability is coming off a higher base rather than collapsing outright. That backdrop, together with recent share price gains over 7, 30 and 90 days, suggests the business model continues to generate healthy cash style economics even as the story broadens beyond iron ore.

    Margin Compression Keeps The Red Hill Bears Engaged

    The other side of the ledger looks less comfortable. Red Hill Minerals now reports a trailing net margin of 63.6%, down from 76.9%, which points to pressure on economics even as revenue and earnings step up. Profit is growing from a relatively low A$9.13m base, so the expansion does not erase the squeeze in profitability. Recent share price gains in the low single digits also hint at a market that is interested but not euphoric. Anyone worried about exploration risk and earnings quality still has numbers to point to.

    After a net margin drop from 76.9% to 63.6%, are shrinking economics just the opening clue? Review our risk analysis for Red Hill Minerals which shows 1 important warning sign

    Stay Ahead With Simply Wall St

    Compression in Red Hill Minerals margins and a 15.1x P/E against a lower rated industry can be a trigger to track the share price against fair value in real time, so register for free with Simply Wall St and add it to your Watchlist to spot a potential entry that matches your risk tolerance. Once you hold the stock, bring it into your Portfolio Command Center to cut through market noise and focus on the most relevant developments to your positions. For a broader view on sentiment and ideas around Red Hill Minerals and peers, plug into the Community and compare your thinking with other investors. By surfacing potential catalysts and warning signs early, Simply Wall St helps you act with clarity and stay a step ahead of the market.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.