Eramet (ERA) H2 2025 earnings summary

Executive summary

• 2025 was marked by significant macroeconomic headwinds, historically low commodity prices, adverse FX, and operational challenges, resulting in sharply lower profitability, cash generation, and a stretched balance sheet.

• Interim CEO resumed leadership after board's dismissal of previous CEO, emphasizing continuity and stability during a challenging year.

• Decisive actions are underway to restore resilience, including a comprehensive plan with performance improvement, asset monetization, and a €500m equity base strengthening in 2026.

• Key operational milestones included the successful ramp-up of the Centenario lithium plant in Argentina and achieving IRMA 50 certification in Senegal.

• Safety remains a top priority, though several fatal contractor accidents in 2025 prompted reinforced corrective actions and targeted safety initiatives.

Financial highlights

• Turnover decreased 7% year-over-year to €3,155m, mainly due to lower commodity prices and adverse FX.

• Adjusted EBITDA fell 54% to €372m, with 80% of the decline attributed to external factors.

• Net income (Group share) was negative at -€370m to -€477m, impacted by a €171m impairment in mineral sands.

• Adjusted free cash flow was negative at €481m; net debt rose to €1.9–2.0bn.

• No dividend will be proposed for 2025 or 2026.

Outlook and guidance

• 2026 is expected to be a pivotal year with improving commodity prices and operational execution as key focus.

• Manganese ore transported volumes guided to rise to 6.4–6.8 million tonnes; lithium carbonate production targeted at 17,000–20,000 tonnes.

• CapEx to decrease sharply to €250–290m, focusing on sustaining and debottlenecking investments.

• Performance improvement plan (Resolution program) aims for €130–170m EBITDA uplift within two years.

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