Nickel Industries (NIC) H2 2025 earnings summary

Executive summary

• Achieved 17.8 million safe man-hours in 2025, with LTIFR and TRIFR well below world steel averages and multiple ESG awards received.

• Delivered record production in nickel, cobalt, and mine output despite a challenging year with a 10% drop in LME nickel prices versus 2024.

• Maintained robust EBITDA and operations despite industry-wide closures, with significant operational and project milestones achieved.

• Strategic partnership with SpaceX supplier Sphere, which acquired a 10% stake in the ENC project for US $240m.

• ENC HPAL construction remains on schedule for H1 2026 commissioning.

Financial highlights

• Revenue for 2025 was $1.65 billion, with adjusted EBITDA of $282.8 million, impacted by $21.3 million in standby costs due to RKAB quota issues.

• Net debt at year-end was $866 million, with cash of $357 million and total debt of $1.2 billion.

• Paid a dividend of $0.015 per share in 2025 and maintained at A$0.04 per share.

• Record NPI production of 1,055,658 tons and mine production of 19.2 million wet metric tons.

• Adjusted EBITDA per ton for NPI down 22% year-over-year due to lower prices.

Outlook and guidance

• ENC HPAL commissioning scheduled for H1 2026, targeting 72,000–80,000 tons of nickel units at high margins, with potential for above-nameplate performance.

• Broker consensus estimates $500 million EBITDA for 2026, with internal projections suggesting potential for $700–$800 million if current pricing holds.

• Sampala project development progressing, with first production targeted for 2027 and expected to enhance ore self-sufficiency and EBITDA.

• Fully funded growth with minimal sustaining CapEx and significant tax holidays.

• Increased Hengjaya Mine sales quota to 14.3 million wet metric tons for 2026.