Eramet: structural measures to strengthen balance sheet and prepare the future, after a challenging year 2025

Core Viewpoint - Eramet faced significant challenges in 2025 due to global macroeconomic headwinds, cyclical lows in core commodities, and a weakening dollar, which adversely affected profitability and cash generation. However, the company achieved key milestones in its strategic roadmap, particularly in lithium production and positive mining initiatives [3][4]. Financial Performance - Adjusted EBITDA for 2025 was €372 million, down 54% from 2024, primarily due to unfavorable price and exchange rate impacts, particularly in manganese [5][29]. - Net income attributable to the Group was -€477 million, with a net income of -€370 million when excluding SLN, reflecting a significant decline in EBITDA and asset impairment charges [5][29]. - Adjusted Free Cash Flow was -€481 million, influenced by construction capex for the lithium plant and tax disbursements [5][31]. Operational Highlights - The ramp-up of lithium production at Centenario achieved close to 75% of design capacity by December 2025, marking a significant operational milestone [5][100]. - The Eramet Grande Côte site in Senegal achieved the IRMA 50 performance level, aligning with the Group's Act for Positive Mining vision [4][16]. Strategic Initiatives - The ReSolution program was launched to improve operational performance, cash generation, and safety, with a target of delivering an initial EBITDA improvement potential of €130-170 million within two years [10][13]. - A funding plan was approved to enhance cash generation and strengthen the balance sheet, focusing on strict capital allocation, deleveraging, and targeted investments [7][11]. Market Trends - The global manganese ore price index averaged $4.5/dmtu in 2025, down 18% from 2024, reflecting a surplus in the supply/demand balance [50][60]. - Global electric vehicle sales increased by 20% in 2025, driving demand for lithium, which reached 1,533 kt-LCE, up 31% year-on-year [96][97]. Future Outlook - For 2026, Eramet targets manganese ore transportation volumes between 6.4 and 6.8 million tonnes, with a cash cost forecast between $2.4 and $2.6/dmtu [61][62]. - The lithium market is expected to continue growing, driven by the adoption of electric vehicles, with a projected sales penetration rate of 60% in China by 2026 [102].