Imerys (NK) Q2 2025 earnings summary

Executive summary

• H1 2025 sales were stable on a comparable basis (organic growth -0.4%), with persistent low industrial activity in Europe and a weaker North American economy; Q2 2025 revenue declined 10.7% year-over-year, mainly due to soft volumes and US dollar depreciation, partially offset by positive pricing.

• Adjusted EBITDA for H1 2025 was €281 million (16% of sales), up 1.7% like-for-like and excluding joint ventures, supported by price increases, cost savings, and strong conductive additives business.

• The Emili lithium project advanced, with a pre-feasibility study confirming strong fundamentals, a 373 Mt resource at 1.0% Li₂O, a 50-year mine life, and revised construction costs; commercial production is now planned for 2030.

• Net income, Group share, for H1 2025 was €70 million, down over 50% year-over-year, reflecting lower current net income and reduced joint venture contributions.

• Investments in growth areas like conductive additives and innovation are delivering significant sales and profit contributions.

Financial highlights

• H1 2025 revenue: €1,757 million, down 8.4% reported, flat organic growth (-0.4%) as price increases offset lower volumes.

• Adjusted EBITDA for H1 2025: €281 million (16% margin), up 1.7% like-for-like; Q2 margin reached 17.3%.

• Net current free operating cash flow for H1 2025: €40 million, down from €88 million in H1 2024, mainly due to lower profitability and reduced dividends from JVs.

• Net financial debt as of June 30, 2025: €1,410 million, up €135 million from December 2024, mainly due to dividend payments; net financial debt/adjusted EBITDA: 2.5x.

• Investment grade ratings confirmed by S&P (BBB-, stable) and Moody's (Baa3, stable); high liquidity with €1,010 million in credit lines and €464 million in cash.

Outlook and guidance

• Full-year 2025 adjusted EBITDA targeted at €540–580 million, assuming no material deterioration in the macroeconomic environment.

• Volumes expected to turn positive in H2 2025, driven by tariff agreements, innovation, and a rebound in construction and EV markets.

• Management remains confident in navigating ongoing geopolitical and macroeconomic uncertainties.