PT Vale Indonesia (INCO) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results with revenue of $252.7 million, up 22.4% year-over-year, and robust profitability, despite furnace rebuild and regulatory delays.

• Net profit for Q1 2026 was $44 million, nearly doubling year-over-year, with EPS at $0.0041.

• Achieved significant progress in growth projects, with Bahodopi and Pomalaa mining sites contributing to diversification and future revenue streams; Pomalaa commenced operations in January.

• Maintained robust safety standards with no fatalities and a lower injury frequency rate of 0.12 year-over-year.

• Gross profit margin improved to 22.5% from 9.5% year-over-year, reflecting higher sales and operational efficiency.

Financial highlights

• Q1 2026 revenue reached $253 million, down 11% from 4Q25 due to lower sales volumes but offset by a 15% increase in average realized nickel matte price.

• EBITDA rose 29% quarter-over-quarter to $80.1 million, reflecting strong operating leverage.

• Net profit surged 85% year-over-year to $44 million.

• Cash and cash equivalents stood at $220 million at quarter-end, down from $376.4 million at year-end 2025 due to capital expenditures.

• Total assets as of March 31, 2026 were $3.34 billion, with equity at $2.82 billion and liabilities at $521.8 million.

Outlook and guidance

• On track to achieve full-year production target of 67,645 tons of nickel matte.

• Anticipates higher production volumes in subsequent quarters as furnace rebuild is completed.

• 2026 production quotas for Pomalaa and Bahodopi blocks were set at 30% of proposed volumes, with management seeking increases.

• CapEx for 2026 projected at $670 million, rising to $1.1 billion in 2027, reflecting continued investment in growth projects.

• Market expects nickel prices to stabilize with potential upside as supply rebalances and alternative sulfur sources emerge.