Eramet (ERA) H1 2025 earnings summary

Executive summary

• H1 2025 performance was below ambitions, with operational challenges at PT Weda Bay Nickel and across the portfolio, leading to a significant decline in group results.

• Safety performance remained strong, with a TRIFR of 0.6, surpassing CSR roadmap targets.

• Comprehensive asset and operational reviews were launched to set a baseline and unlock full asset potential.

• Positive milestones achieved in lithium operations in Argentina, with DLE technology proven at industrial scale.

• CSR and ESG initiatives advanced, including preventive health, biodiversity education, gender diversity, and marine environment programs.

Financial highlights

• Adjusted EBITDA (excluding SLN) dropped 45% year-over-year to €191 million, mainly due to lower nickel grades, productivity issues, and higher costs.

• Net income group share (excluding SLN) was negative at -€101 million; total group net income was -€152 million.

• Free cash flow was negative at -€266 million, reflecting lower EBITDA and significant capex.

• Net debt rose to €1.8 billion, with leverage at 2.7x adjusted EBITDA and gearing at 94%.

• Liquidity remained strong at €1.7 billion at end of June 2025.

Outlook and guidance

• Downward price trends expected for manganese ore, nickel, and lithium for the rest of 2025; market consensus: manganese ore $4.6/dmtu, nickel $15,540/t, lithium carbonate $9,300/t-LCE.

• Manganese ore production guidance revised to 6.5–7.0 million tons; nickel ore sales target increased to 36–39 Mt after permit revision in Indonesia.

• Lithium production guidance lowered to 4–7 kt-LCE for 2025 due to ramp-up delays; full capacity expected by mid-2026.

• CapEx for 2025 projected at €400–450 million, with €150–200 million for sustaining and up to €250 million for growth investments.

• Focus for H2 2025 on operational efficiency, logistics, and ramping up Centenario lithium plant.