France · Delayed Price · Currency is EUR ERAMET Earnings Call Transcripts
Fiscal Year 2026
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A EUR 500m rights issue, backed by a strategic French state investment and participation from reference shareholders, is planned before year-end. Proceeds support balance-sheet strengthening and deleveraging, alongside ongoing asset monetization.
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Adjusted EBITDA rose 45% to EUR 276 million, with positive free cash flow and stabilized debt. Operational improvements in lithium and manganese offset challenges from a fire in Senegal and permitting issues in Weda Bay. Funding plan and capital increase remain key priorities.
Fiscal Year 2025
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2025 was a challenging year with a 54% drop in Adjusted EBITDA and negative net income, driven by low commodity prices, FX headwinds, and operational issues. A comprehensive funding plan, including a EUR 500 million capital increase and asset monetization, aims to restore financial stability in 2026.
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Management outlined a comprehensive transformation plan targeting EUR 130–170 million EBITDA uplift over two years, driven by operational and commercial excellence, safety improvements, and financial discipline. Centenario's ramp-up is on track, CapEx is being reduced, and deleveraging remains a priority.
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H1 2025 saw sharply lower EBITDA and negative net income, driven by operational challenges, weak markets, and FX impacts. Guidance for manganese and lithium was revised down, while nickel was upgraded due to new permits. An asset review and cost controls are underway to restore performance.
Fiscal Year 2024
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Adjusted EBITDA reached €814M (ex-SLN) despite €222M in external headwinds, with net income of €144M and strong liquidity. Lithium ramp-up and strategic investments position the group for future growth, though 2025 is expected to remain volatile.
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Full ownership of the flagship lithium asset in Argentina was secured for $699 million, funded by existing liquidity. Q3 turnover fell 17% year-over-year due to weak manganese and nickel volumes, but mineral sands output hit a record. CapEx for 2024 was cut by EUR 250 million.
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Operational performance was strong in H1 2024, with significant production growth in Gabon and Indonesia, but financials were impacted by low prices and SLN losses. Manganese prices are set to drive a sharp H2 rebound, and the new lithium plant in Argentina will start production in November.