Vale (VALE3) Q2 2025 earnings summary

Executive summary

• Achieved record or strong operational performance in iron ore, copper, and nickel, reflecting operational excellence, cost competitiveness, and a focus on safety and sustainability, including a 55% reduction in TRIFR since 2020.

• Net operating revenue for the six months ended June 30, 2025, reached R$97,218 million, up 3.8% year-over-year, while net income attributable to shareholders was R$20,245 million, down 11.5% from the prior year period.

• Adjusted EBITDA for the six months was R$37,336 million, nearly flat compared to R$37,852 million in the prior year, with pro forma EBITDA for Q2 2025 at $3.4 billion, up 7% sequentially but down 14% year-over-year.

• Continued progress in energy transition metals, notably nickel and copper, supported by successful ramp-ups, efficiency initiatives, and the launch of the Carajás and Bacaba copper growth programs.

• Industry-leading transparency with the publication of a sustainability-related financial information report and significant ESG progress, including 77% of Brumadinho reparation commitments completed.

Financial highlights

• Pro forma EBITDA reached $3.4 billion in Q2 2025, up 7% sequentially but down 14% year-over-year due to a 13% decline in reference prices; adjusted EBITDA for the six months was R$37,336 million.

• Recurring free cash flow was $1 billion in Q2, $500 million higher than Q1, driven by higher EBITDA and lower working capital variation; net cash generated by operating activities was R$20,292 million for the six months.

• Board approved $1.4 billion (R$8,091 million) in interest on capital to be paid in September 2025, reinforcing shareholder returns.

• Expanded net debt ended the quarter at $17.4 billion (R$66,296 million), within the target range of $10–20 billion.

• Basic and diluted earnings per share for the six-month period were R$4.74, compared to R$5.34 in the prior year.

Outlook and guidance

• Confident in achieving full-year guidance for C1 and all-in costs in iron ore and base metals, with further cost reductions expected; all 2025 operational and cost guidances remain on track.

• 2025 all-in cost guidance for copper revised down to $1,500–$2,000 per ton, implying a $300 million EBITDA improvement; iron ore C1 cash cost guidance set at $20.5–22.0/t.

• CapEx guidance maintained at $5.9 billion for the year, with expectations to move net debt toward the midpoint of the target range.

• The company does not expect significant effects from new U.S. tariffs on Brazilian imports, as sales to the U.S. are not material.

• Additional shareholder returns possible in H2 2025, depending on cash flow and net debt position.