Eramet (ERA) H1 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 45% year-over-year to €276 million, driven by strong lithium and manganese performance and operational improvements, but offset by non-recurring items such as the Senegal fire and permit restrictions.

• Adjusted Free Cash Flow returned to positive at €7 million, reflecting EBITDA growth and strict capex discipline.

• Net income (Group share) was negative at -€146 million (excluding SLN) or -€195 million (including SLN), mainly due to a €112 million impairment in Mineral Sands after the Senegal fire.

• Funding plan execution is on track, with a €500 million capital increase approved and scheduled for Q4 2026.

• Safety performance improved, with TRIFR down to 0.5, but two fatal contractor accidents occurred in Indonesia, prompting targeted action plans.

Financial highlights

• Adjusted turnover increased 8% year-over-year to €1,649 million, supported by higher volumes and prices in manganese and lithium.

• Capex reduced by 53% year-over-year to €100 million in H1 2026, reflecting strict capital discipline.

• Net debt (excluding SLN) stable at €2.0 billion; adjusted leverage improved to 4.5x from 5.5x; gearing at 129%.

• Liquidity at end of June was €1.3 billion, with the revolving credit facility fully drawn.

• No dividends paid to shareholders; Comilog minority dividends limited to €12 million.

Outlook and guidance

• 2026 guidance confirmed: Manganese ore transported 6.4–6.8 Mt, FOB cash cost $2.4–2.6/dmtu; lithium carbonate production 17–20 kt-LCE, aiming for near 100% nameplate capacity by year-end.

• Capex guidance for the year confirmed at €250–290 million, including €35 million for Senegal repairs.

• Nickel ore external sales limited to 9 Mwmt, pending regulatory approval for higher quotas.

• Mineral Sands production expected at 300–400 kt-HMC, with full capacity return planned for Q1 2027.

• Focus remains on safety, operational execution, full ramp-up of Centenario, and completion of the funding plan.