Umicore (UMI) H2 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with the launch of new strategies, including the CORE strategy and consolidation of EV-related businesses, focusing on value recovery, operational excellence, and disciplined capital allocation.

• Strong performance in foundation businesses was driven by efficiency gains and favorable metal prices, with revenues up 3% and adjusted EBITDA up 11% year-over-year.

• The sale and leaseback of permanent gold inventory unlocked significant value, generating €525 million in cash and reducing leverage to 1.6x.

• All business segments except Recycling saw EBITDA improvement or stability; Recycling remained stable with strong margins.

• The company enters 2026 on a stronger footing, maintaining a focus on cost discipline, selective growth, and value recovery in Battery Materials.

Financial highlights

• Revenues (excluding metal) rose 3% year-over-year to €3.6 billion; turnover reached €19.4 billion.

• Adjusted EBITDA increased 11% to €847 million (margin 24.0%); Adjusted EBIT up 21% to €579 million (margin 16.5%).

• Adjusted net income: €288 million; adjusted EPS up 13% to €1.20.

• Net income: €385 million, a significant turnaround from -€1.5 billion in 2024.

• Free operating cash flow reached €524 million, supported by gold inventory sale; capex limited to €310 million.

• Dividend proposed at €0.50 per share (42% payout ratio).

Outlook and guidance

• No concrete 2026 guidance due to market volatility, but adjusted EBITDA is expected to progress, with focus on capital discipline, cash generation, and efficiency.

• CapEx for 2026 expected between €300 million and €400 million, mainly for Recycling and Specialty Materials growth, excluding IONWAY contributions.

• Battery Materials Solutions to pursue value recovery, leveraging take-or-pay contracts and cost base improvements.

• Catalysis expected to benefit from strong market position in gasoline catalyst applications despite peak ICE production.

• Corporate costs to rise due to investments in digitalization and AI.