Sherritt International (S) Q4 2025 earnings summary

Executive summary

• Leadership changes included a new Board Chair, new independent directors, and a streamlined executive team, with a permanent CEO search ongoing.

• Operational turnaround plan at Moa JV launched to restore production and reliability, with debottlenecking and equipment upgrades underway.

• Power division delivered record dividends, doubling the prior year, supporting liquidity and reflecting strong operational improvements.

• Major debt restructuring in April 2025 reduced obligations by $68M, extended maturity to 2031, and lowered annual interest expense by $3M.

• Cost-saving measures, including a 10% workforce reduction, are expected to deliver $20M in annual savings in 2025, in addition to $17M from 2024.

Financial highlights

• Q4 2025 combined revenue was $163.2M, up from $160.3M in Q4 2024; full-year combined revenue was $532.9M, down from $577.6M in 2024.

• Net loss from continuing operations was $65.4M, improved from $73.1M in 2024; adjusted EBITDA fell 78% to $7.1M.

• Finished nickel production (Moa JV, 100% basis) was 25,240 tonnes, and cobalt 2,728 tonnes, both within revised guidance.

• Power division produced 799 GWh, with unit operating cost at $23.33/MWh, at the low end of guidance.

• Year-end available liquidity in Canada was $43.7M, including $30.3M in cash and $13.4M in available credit.

Outlook and guidance

• 2026 finished nickel production expected at 26,000–28,000 tonnes and cobalt at 2,750–2,850 tonnes (100% basis), both higher year-over-year.

• Mixed sulphides production forecasted at 30,000–32,000 tonnes, weighted to H2 2026.

• NDCC for 2026 forecast at $5.75–$6.25/lb, supported by higher production, cost optimization, and higher cobalt credits.

• Power division expects 825–875 GWh production and $27.25–$28.75/MWh unit operating cost.

• Energas dividends in Canada projected at $20–25M in 2026; no distributions expected under the Cobalt Swap Agreement.