Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel (GMKN) H2 2025 earnings summary

Executive summary

• Revenue reached $13.8bn in 2025, up 10% year-over-year, driven by higher realized prices for copper, palladium, and platinum, despite a 10% drop in nickel prices.

• Net income surged 36% to $2.5bn, with total comprehensive income at $4.96bn, reflecting strong operational performance.

• EBITDA grew 9% to $5.7bn with a 41% margin, and free cash flow was $3.5bn, with adjusted FCF at $1.5bn after interest, lease, and minority dividends.

• Strategic focus included operational efficiency, digital initiatives, and environmental programs, notably SO₂ emission reductions.

• Major capital investments and reconfiguration of production facilities impacted asset values and provisions.

Financial highlights

• Metal sales revenue in 2025 was $12,983M, up from $11,848M in 2024.

• EBITDA for 2025 was $5,668M, compared to $5,196M in 2024.

• Operating costs rose 11% to $5.7bn, but cash operating cost growth was below Russian inflation due to management efforts.

• Net debt/EBITDA improved to 1.6x, reflecting a conservative debt policy and successful refinancing of ~$6.5bn in 2025.

• CAPEX totaled $2.6bn, with significant investments in environmental and development projects.

Outlook and guidance

• 2026 guidance expects nickel and copper production to remain stable, with a slight decline in platinum group metals due to ore composition changes.

• Management expects continued adaptation to sanctions and supply chain disruptions.

• No adverse impact on going concern is anticipated for at least 12 months after 2025.

• Market outlook highlights potential nickel market rebalancing if Indonesia cuts mining quotas, and continued strong demand for copper and PGMs.