Eramet: Revenue Up by 13%, But Exchange Rates and Uncertainty Weigh In
Eramet reports a strong commercial performance in the first quarter of 2026, with adjusted revenue up by 13% to 840 million euros. However, this growth masks contrasting dynamics: while volume and price support growth, several factors limit visibility for the full year. An unfavorable exchange rate effect of 9% partially offsets the gains, while regulatory and operational constraints restrict the planned productions for 2026.
Strong Sales and Favorable Price Environment
The adjusted revenue of 840 million euros reflects a 13% increase compared to the first quarter of 2025. The volume and mix effect was approximately 15%, driven particularly by a 10% increase in manganese ore sales and a 54% increase for nickel ore. The price effect contributed positively by 7%. The railway transport sector in Gabon recorded a particularly strong performance with a 16% increase in the volume of ore transported. In terms of lithium, Centenario continues to ramp up with an achievement rate close to 80% on average in March, in line with targets. The price environment was favorable, especially for manganese with an 8% increase in the CIF China price index and for lithium carbonate, whose price index more than doubled in China.
Challenges from Exchange Rates and Macroeconomic Environment
Despite the revenue growth, the benefits of the price effect and volume growth are partly offset by an unfavorable exchange rate effect of 9%. Moreover, the uncertain macroeconomic environment, particularly related to the situation in the Middle East, generates inflationary impacts on the prices of inputs, notably energy and freight. These elements illustrate the group's sensitivity to currency fluctuations and variations in operating costs.
2026 Objectives Amid Regulatory and Operational Challenges
For 2026, Eramet confirms its target for transported manganese ore, between 6.4 and 6.8 million tonnes, with a FOB cash cost between 2.4 and 2.6 dollars per dry ton. However, the production of nickel ore sold externally is now limited to 9 million tonnes based on an initial regulatory authorization of 12 million tonnes. A request for an increase is currently being filed. For the produced lithium carbonate, the target is confirmed between 17 and 20 kilotonnes equivalent of lithium carbonate, with a planned nominal capacity close to 100% by the end of the year. Regarding mineralized sands, production remains suspended following a fire in February in Senegal. The group plans to communicate its heavy mineral concentrate production targets in the coming weeks after a gradual and partial restart scheduled from the end of April. Investment expenditures are controlled, with a confirmation of capex between 250 and 290 million euros in 2026, down 30 to 40% compared to 2025.
