Eramet-sln Stock Earnings Reports

Eramet reported a very challenging 2025 driven by historically low commodity prices, an unusually weak U.S. dollar for the sector, permitting constraints in Indonesia (Weda Bay) and operational/logistics issues in Gabon. Adjusted EBITDA fell 54% to EUR 372m, adjusted free cash flow was negative EUR 481m, net debt rose to ~EUR 1.9–2.0bn and adjusted leverage reached 5.5x. The Board approved a three‑pillar remediation plan: (1) an operational performance improvement program (ReSolution) targeting EUR 130–170m EBITDA uplift over two years and accelerated ramp-up and cost reduction at the Centenario lithium plant; (2) a strategic asset review to monetize assets (targeting sizable cash proceeds in 2026); and (3) an equity strengthening via a proposed ~EUR 500m capital increase (to be put to the May 2026 AGM, with reference shareholders supportive in principle). CapEx will be cut sharply (guidance EUR 250–290m in 2026), dividends are suspended for two years, and management has drawn the RCF to preserve liquidity while seeking bank waivers for covenant relief through the execution of the funding plan. Safety is a top priority after multiple fatal contractor accidents at Weda Bay; corrective measures are underway. Lithium is a strategic bright spot: Centenario reached ~75% of nameplate in December 2025, is expected to produce 17–20kt LCE in 2026 and approach full capacity by year‑end, with low‑capital expansion options being considered (possibly with partners). Execution in 2026 on safety, the operational plan and the funding package is framed as pivotal to restore financial flexibility and long‑term value creation.