Ferrexpo (FXPO) H2 2025 earnings summary

Executive summary

• Operations severely impacted by the ongoing war in Ukraine, with production and logistics disrupted by attacks on infrastructure and the withholding of VAT refunds by Ukrainian authorities, leading to significant liquidity constraints and forced downscaling of operations.

• The Group reported a net loss of US$224 million for 2025, driven by a US$154 million impairment on non-current assets, lower sales volumes, and a shift to lower-margin concentrate sales.

• A planned equity capital raise of up to US$100 million is intended to support working capital and ongoing operations, but its completion is subject to shareholder approval and represents a material uncertainty for going concern.

Financial highlights

• Revenue declined 16% to US$787 million, with total sales volumes down 4% to 6.6 million tonnes year-over-year.

• Underlying EBITDA fell 61% to US$28 million (2024: US$69 million), with an EBITDA margin of 3%.

• Net cash from operating activities dropped to US$3 million (2024: US$92 million), reflecting lower prices, VAT suspension, and working capital outflows.

• C1 cash cost of production for pellets decreased to US$76.3/t (2024: US$77.5/t); C4 cost for concentrate fell to US$50.3/t (2024: US$55.3/t).

• Capital investment was cut by 52% to US$49 million.

• Net cash position at year-end was US$47 million (2024: US$101 million).

Outlook and guidance

• The Group’s financial and operational outlook remains highly uncertain, dependent on the war’s progression, restoration of VAT refunds, and the success of the planned equity raise.

• Production is expected to remain below pre-war levels, with a gradual recovery only possible if liquidity improves and infrastructure stabilizes.

• No formal production or cost guidance for 2026 due to ongoing uncertainties.