Lithium Americas posts net income of $90.1 million in third quarter
Key Facts
Lithium Americas said on November 12 that it had filed its quarterly report, which includes unaudited financial results for the quarter and nine months ended September 30, 2026. The company posted net income of $90.1 million in the third quarter, compared with a net loss of $199.2 million in the same period of 2025. Net income attributable to shareholders was $74.7 million, compared with a loss of $197.7 million a year earlier. But the company recorded a diluted loss per common share of $0.05, narrower than a loss of $0.83 in the year-earlier quarter. The results came as spending on the Thacker Pass project continued, after the company raised its estimate for the first phase's cost in a separate update issued on November 11.
The year-over-year comparison shows a swing from loss to profit, but income attributable to the company's shareholders coincided with gains from the fair-value remeasurement of financial instruments. The gain on the joint venture's project warrant liability was $53.6 million in the third quarter, while the gain on convertible debt and the conversion feature was $39.3 million. At the same time, diluted loss per share remained at $0.05, putting the improvement in net income in the context of the gains reported by the company. That does not change the fact that net income and net income attributable to shareholders were better than the losses in the year-earlier period in 2025. The available information did not include a revenue figure or analyst estimates for comparison with the result.
On the project, Lithium Americas raised its estimate for first-phase capital spending at Thacker Pass to $3.83 billion, including contingency, from a previous estimate of $2.93 billion. The company estimated tariff and logistics impacts at about $100 million, among other factors behind the cost increase. It said its estimated tariff exposure had fallen to about $60 million, from a previous estimate range of $80 million to $100 million, after most equipment and materials had been received. The cost update means construction financing and the planned level of spending remain key areas to monitor for the project. Capital costs and capitalized project fees totaled $2.4 billion through September 30, of which $2.3 billion was included in the total cost estimate.
The company held about $1.3 billion in cash and restricted cash on September 30, 2026, including $359.5 million at the Thacker Pass joint venture. In the third quarter, it spent $662.5 million on capital expenditures, and capital spending totaled $1,464.9 million in the first nine months of the year. The company is targeting total capital spending of between $1.7 billion and $2.0 billion for fiscal 2026. These figures put the liquidity reported at the end of September alongside ongoing construction needs and annual spending guidance. The company said its estimated tariff exposure was reduced after most equipment and materials had been received, while the total cost estimate for the first phase remained above the previous estimate.
Lithium Americas said procurement was more than 90% complete as of September 30 and about 1,900 people were working at the site, including more than 1,600 craft workers. Chief Executive Jonathan Evans said the first phase was moving toward peak construction activity by the end of 2026, with work shifting to pipe and electrical installation. He added that the company was building its operations and readiness team in preparation for the transition from development to operations. This operational progress puts the targeted mechanical completion date in late 2027 within the company's announced project schedule. The company is targeting a ramp-up to commercial production during 2028, with nameplate capacity at full operation of 40,000 tonnes per year of battery-grade lithium carbonate.
In premarket trading on November 12, LAC was up 1.21% compared with its previous close, according to Yahoo Finance data at the time of review; this does not establish the stock's direction during the regular session. The stock closed at $1.65 on November 11, down 12.70% from the previous close, according to EL7 and Yahoo Finance data. The results published on November 12 therefore came ahead of a session following a down day for the stock. Late 2027 mechanical completion, followed by a production ramp-up during 2028, remain the company's next stated project milestones. At full capacity, the company expects to produce 40,000 tonnes per year of battery-grade lithium carbonate.