Iofina PLC (AIM:IOF, OTC:IOFNF) this week reported record revenue and profit for the first half of 2025, driven by higher iodine production volumes and strong pricing.
The company told investors that revenue rose by 12.00% year-on-year to more than USD 29.00 million, while profit increased by over 40.00% to exceed USD 3.00 million.
It said output reached a record 305 metric tons during the period, supported by the launch of IO#11, Iofina’s third plant in three years.
IO#11 became operational in July and is now contributing to the company’s cash flow. Iofina said production guidance for the full year was between 400 and 440 metric tons, which would mark another record if achieved.
CEO Dr Tom Becker joined the Proactive studio to tell us more.
Proactive: Tom, very good to speak with you. Revenue and profit were both up strongly in the first half of 2025. What were the main drivers behind the performance?
Dr Tom Becker: Thanks, Stephen. Yeah, record revenue for us – over $29 million, up over 12% year over year. Profit was up over 40% year over year, over $3 million. The main driver for us is we keep growing our business. Another record number was production – over 305 metric tons. We’ve made a conscious effort to add additional iodine plants. We had an iodine plant open in the second half of last year, and now we're seeing the rewards of that.
Proactive: You mentioned you produced over 305 metric tons in the first half. August was a record month as well. How confident are you about hitting your production targets for the second half now that IO#11 is fully operational?
Dr Tom Becker: Very pleased. IO#11 came online in July this year. It’s our third plant in three years. We’re committed to prudent growth, a little faster than before. Our balance sheet allows us to do that. We’re confident in the legacy production from our other plants. IO#11 is now fully online. We’ve given a production range of 400 to 440 tons – we’re confident in that range today. That should be another record for us.
Proactive: Iodine prices remain firmly above $70 a kilogram. How do you see supply and demand developing into 2026, particularly with new capacity coming on stream globally?
Dr Tom Becker: The iodine market is approaching 40,000 metric tons per year. Growth usually tracks GDP. Last year was strong, maybe slightly less this year, but demand still exceeds supply. Prices have been strong – over $70 a kilo. In fact, we averaged over $74 per kilo. Some Chilean projects may bring new supply, but with demand growing by 1,000 to 1,500 tons per year, we think that supply will be absorbed. We don’t see a price drop, and expect current pricing to continue.
Proactive: With IO#11 delivered on time and on budget, can you update investors on IO#12 and your wider pipeline of new plants?
Dr Tom Becker: IO#11 is a 100-metric-ton plant in central Oklahoma – our third plant in three years. We’re not stopping there. We expect another plant to be under construction before year-end. Negotiations are well advanced. That’s not the only project – we’re also working on new iodine production projects and developing new products at our Iofina Chemical facility to push iodine into value-added products.
Proactive: Brokers have noted the plants are getting bigger. Is that a deliberate strategy?
Dr Tom Becker: Our plant size depends on the brine supply in a given area. IO#11 is a 100-metric-ton plant, but we have plans in areas with larger water volumes. So, in the future you may see plants of different sizes. We'll announce those once they materialise.
Proactive: You ended the first half with $6.4 million in cash and modest net debt. After investing in new capacity, how do you plan to finance further growth while maintaining that strong balance sheet?
Dr Tom Becker: Cash flow has been strong. It can fluctuate a few million dollars depending on how the business runs – large sales can exceed $1 million. But we're well positioned to fund our next plant. We have facilities in place with our banking partner. IO#11 is paid for and is now generating cash. So we’re well positioned with our CapEx loan facility for the next IOsorb plant.
Proactive: Brokers recently raised the price target for Iofina. What do you see as the key catalysts for unlocking more value for shareholders over the next 12 to 18 months?
Dr Tom Becker: For us, it’s about continued execution of our growth plans and telling our story. Iofina is a unique and growing business. We recover a resource from the oil and gas industry that would otherwise go unused. We’re not a startup – our technology is proven. We need to keep executing and making sure new investors hear our story. That will help deliver more shareholder value.
Proactive: Tom, I hope you'll continue to keep us updated.