Eramet (ERA) H2 2025 earnings summary

Executive summary

• 2025 was marked by severe external headwinds, historically low commodity prices, adverse FX movements, and operational challenges, resulting in a significant decline in financial performance and a stretched balance sheet.

• Leadership changes included the appointment of an interim CEO after the previous CEO's dismissal for governance issues, with ongoing investigations involving the CFO.

• Major milestones included the successful ramp-up of the Centenario lithium plant in Argentina to 75% capacity and IRMA 50 certification at the Senegal mineral sands mine.

• A comprehensive funding and performance plan was launched, focusing on operational improvement, asset monetization, and a €500 million capital increase planned for 2026.

• Safety remains a core priority, with reinforced measures after contractor fatalities and continued advancement of responsible mining strategies.

Financial highlights

• Turnover fell 7% year-over-year to €3.2 billion, mainly due to price declines and adverse FX despite higher lithium volumes.

• Adjusted EBITDA dropped 54% to €372 million, with 80% of the decline from external factors and 20% from operational issues.

• Net income (Group share) was -€370 million to -€477 million, impacted by a €171 million impairment in mineral sands/Senegal.

• Adjusted free cash flow was -€481 million; net debt rose to €1.9–2.0 billion at year-end.

• No dividend will be paid for 2025 or 2026.

Outlook and guidance

• 2026 is expected to see a more favorable pricing environment and operational improvements, with consensus for higher manganese, nickel, and lithium prices.

• Manganese ore volumes are guided at 6.4–6.8 million tonnes; lithium carbonate production targeted at 17,000–20,000 tonnes; capex reduced to €250–290 million.

• Full ramp-up of Centenario lithium asset and logistics improvements in Gabon are key operational targets.

• Asset monetization and a €500 million capital increase are planned for 2026 to restore financial flexibility.

• The Resolution program aims for €130–170 million run-rate EBITDA improvement within two years, with full impact by 2028.