Nickel Industries (NIC) Q1 2026 earnings summary

Executive summary

• Achieved US$135.6 million in adjusted EBITDA for Q1 2026, the strongest quarter since December 2023, up 264% year-over-year, driven by higher margins, steady production, and strong performance across all segments.

• Significant rebound in mining operations, with ore sales up 222% sequentially and a 60% increase in the 2026 RKAB sales licence to 14.3 million wmt, supporting future growth.

• RKEF nickel metal production reached 30,264 tonnes, down 4% sequentially, but adjusted EBITDA surged 145% to US$85.8 million due to higher prices.

• HPAL attributable production was 2,153 tonnes of nickel and 237 tonnes of cobalt, 44% above nameplate capacity, with strong EBITDA growth.

• Safety performance remained strong with zero lost time injuries, though a fatal contractor accident at ENC caused a brief delay and temporary suspension of operations.

Financial highlights

• Adjusted EBITDA rose to US$135.6 million, up from US$35 million in the previous quarter, with group margin per tonne for RKEF up 155% to US$2,842/t Ni and HPAL margin up 20% to US$9,992/t Ni.

• RKEF segment revenue increased 13% quarter-over-quarter to US$396.2 million, with realized NPI contract pricing up 19%.

• Mining adjusted EBITDA improved to US$29.0 million from a loss of US$14.9 million in the previous quarter, with unit operating costs down 61%.

• Cash and cash equivalents at quarter end were US$211.8 million, with net debt post-refinancing at approximately US$994 million.

• Cash outflow of approximately US$10 million due to reduction in trade payables, inventory payments, and ore inventory build; US$50 million undrawn debt headroom remains.

Outlook and guidance

• ENC HPAL commissioning expected to begin in May 2026, targeting full nameplate capacity by end of October 2026, with minor delays due to a safety incident.

• Focus remains on ramping up ENC, Sampala, and Siduarsi projects to capitalize on favorable ore economics and rising nickel prices.

• Expectation of working capital build of US$50–$75 million over the next six months for ENC.

• Monitoring impacts of new Indonesian nickel ore Benchmark Price (HPM) and market adoption, especially for limonite.