Vale (VALE3) Q2 2026 earnings summary

Executive summary

• Achieved record production and higher sales across iron ore, copper, and nickel, with operational excellence and ramp-up of key projects driving year-over-year growth.

• Advanced high-return, low-capital projects, including early start-up of Bacaba and commissioning of Serra Sul +20, supporting long-term growth and ambitions to double copper output by 2035.

• Approved $1.7 billion in dividends and interest on capital for September payout, and extended share buyback program up to 100 million shares, signaling confidence in long-term value.

• Advanced sustainability and innovation initiatives, focusing on decarbonization, zero waste, and workforce diversity.

• Net operating revenue for Q2 2026 was $10,498 million, up 19% year-over-year.

Financial highlights

• Pro forma EBITDA reached $4.1 billion, up 19% year-over-year, driven by higher volumes, improved price realization, and operational improvements.

• Adjusted EBITDA for Q2 2026 was $3,676 million, up 9% year-over-year; Vale Base Metals EBITDA totaled $1.3 billion, up nearly 80% year-over-year.

• Free cash flow was $1.5 billion, up 49% year-over-year, supported by strong EBITDA and positive hedging impacts.

• CapEx totaled $1.1 billion in Q2, reflecting capital discipline and efficiency gains.

• Expanded net debt reduced to $16.7 billion, down over $1.1 billion sequentially, with net debt/EBITDA at 0.8x.

Outlook and guidance

• Confident in achieving all production guidances for the year, with 2026 production guidance: iron ore 335–345 Mt, copper 360–380 kt, nickel 185–200 kt.

• Updated 2026 iron ore C1 cash cost guidance to $22.5–23.5/t, and all-in cost to $58–62/t, mainly due to FX and oil price impacts.

• Lowered cost guidance for copper to $0–500/t and for nickel to $10,000–11,500/t, reflecting operational improvements and higher by-product revenues.

• 2026 CAPEX guidance maintained at $5.4–5.7 billion.