Eramet (ERA) H1 2025 earnings summary

Executive summary

• H1 2025 performance was below ambitions, with operational challenges at PT Weda Bay Nickel and lower volumes and prices in manganese and nickel, partially offset by mineral sands growth.

• Safety performance remained strong, with a TRIFR of 0.6, surpassing CSR roadmap targets, and significant ESG initiatives advanced.

• Comprehensive operational and asset performance reviews were launched to boost performance and unlock asset potential.

• Positive milestones achieved in lithium operations in Argentina, with DLE technology proven at industrial scale and ramp-up ongoing.

• Adjusted turnover (excluding SLN) for H1 2025 was €1,528 million, down 7% year-over-year.

Financial highlights

• Adjusted EBITDA (excluding SLN) dropped 45% year-over-year to €191 million, mainly due to PT WBN's reduced contribution and higher costs.

• Net income group share (excluding SLN) was negative at -€101 million; including SLN, net income was -€152 million.

• Free cash flow was negative at -€266 million, with net debt rising to €1.8 billion and leverage at 2.7x adjusted EBITDA.

• Liquidity remained high at €1.7 billion at end of June 2025.

• Gearing covenant reached 94% as of June 2025.

Outlook and guidance

• Downward price trends expected for manganese ore, nickel, and lithium for the rest of 2025; market consensus: manganese ore $4.6/dmtu, LME nickel $15,540/t, lithium carbonate $9,300/t-LCE.

• Manganese ore production guidance revised to 6.5–7.0 Mt; nickel ore production upgraded to 36–39 Mwmt; lithium carbonate guidance revised down to 4–7 kt-LCE.

• CapEx for 2025 projected at €400–450 million, with €150–200 million for sustaining CapEx and growth focused on Argentina and Gabon.

• Focus for H2 2025 on operational efficiency, logistics, and ramping up Centenario lithium plant.