France · Delayed Price · Currency is EUR ERAMET Earnings Call Transcripts
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 €130–170 million EBITDA uplift over two years, driven by operational and commercial excellence. Centenario's lithium ramp-up is progressing well, and financial discipline measures are in place to restore free cash flow and strengthen the balance sheet.
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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.