OM (OMH) H1 2025 earnings summary

Executive summary

• Revenue reached US$309.3 million for 1H 2025, showing marginal year-over-year growth, driven by higher manganese ore volumes and prices but offset by lower alloy volumes and weak ferrosilicon prices.

• EBITDA dropped to US$19.1 million from US$46.6 million in 1H 2024, with a net loss after tax of US$9.6 million compared to a prior year profit.

• Gross profit margin compressed to 7% from 19% due to lower alloy prices and higher costs.

• Operations are anchored by a large, efficient smelter in Sarawak, supported by affordable, renewable hydropower and strong customer relationships.

• The company is progressing with the sale of OMQ and plans to dispose of its 13% interest in the Tshipi Mine by early 2026.

Financial highlights

• Revenue for 1H 2025 was US$309.3 million, nearly flat year-over-year, with modest growth from higher ore volumes and prices.

• EBITDA declined to US$19.1 million from US$46.6 million in 1H 2024.

• Net loss attributable to owners was US$9.5 million, reversing a prior year profit.

• Basic and diluted loss per share was 1.25 US cents.

• Net cash generated from operating activities was US$34.6 million, down from US$69.4 million.

Outlook and guidance

• Ferrosilicon prices declined 10.4% year-over-year and are expected to remain under pressure, but management is confident in long-term fundamentals.

• Manganese alloy prices are expected to remain firm through the rest of 2025 and into early 2026.

• The sale of OMQ is expected to conclude by year-end, and the Tshipi Mine stake disposal is targeted for early 2026.

• Major maintenance for 2 FeSi furnaces scheduled for 2025 is on track.

• No major supply or demand disruptions anticipated in the near term.