Eramet: Revenue up 4% in third quarter, nickel down 64%
Eramet published adjusted revenue of €746 million for the third quarter on October 29, 2026, up 4%. A price effect of +15% offset a volume effect of -12%, which the group attributes exclusively to the decline in sales in Indonesia.
The mining group accompanied this publication with an adjusted EBITDA target for 2026 between €540 million and €610 million, communicated exceptionally in view of its €500 million capital increase. According to the press release, balance sheet strengthening remains conditional on the completion of this transaction by year-end.
The publication comes after several weeks of decline in the stock price: the share had reached a six-year low on the eve of October 20, before rebounding by 2.5% ahead of the publication.
Manganese and lithium up, Indonesian nickel down 64%
Manganese, the group's primary activity, achieved €482 million in revenue, compared to €421 million a year earlier. The ore advanced 31%, to €290 million, with realized selling prices up 18% and external volumes sold up 15%. Alloys declined 4%, to €192 million.
In Gabon, ore transportation reached 1.7 Mt in the quarter (+7%). Lithium generated €70 million in revenue, compared to €7 million in the third quarter of 2025, with lithium carbonate production rising from 2,080 to 4,260 tonnes of lithium carbonate equivalent (t-LCE).
Conversely, adjusted nickel fell 64%, to €51 million. The PT Weda Bay Nickel mine in Indonesia was largely shut down during the quarter following four months of maintenance, then resumed in September following the receipt of new permits. Its external ore sales fell 83%, to 1.6 million tonnes wet basis.
Mineralized sands declined 57%, to €22 million, with production remaining limited to approximately 30% of capacity following the fire that occurred in February in Senegal.
Over nine months, adjusted revenue reached €2,395 million (+7%). The pre-publication consensus of October 27, 2026 estimated quarterly revenue of €794 million, based on a forecast from a single analyst.
Price effect offsets Indonesian mine shutdown
The quarter's growth is based on prices, up 15% according to the group, despite a decline in commodity prices during the period, particularly in lithium. At constant scope and exchange rates, revenue growth comes in at 3%, with the exchange effect contributing 1%.
The Centenario lithium plant in Argentina underwent 14 days of maintenance aimed at improving production reliability. It has been operating at nominal capacity since early October, according to Eramet. Christel Bories, Chief Executive Officer, stated: "In an environment that remains complex and volatile, the improvement in our operational performance is being confirmed".
The group also indicated that a comprehensive inventory of manganese ore stocks, carried out in September by an independent firm following a discrepancy identified, revealed counting errors and density valuation errors. Discrepancies prior to 2025 will be recorded in equity for €39 million, net of deferred taxes.
Discrepancies relating to 2026 represent a non-recurring impact of €20 million on EBITDA, offset by a provision reversal of €20 million. The group therefore does not anticipate any additional impact on second half EBITDA.
2026 Adjusted EBITDA expected between €540 million and €610 million, nickel target raised
Eramet raised its nickel ore external sales target to 23 to 26 million tonnes wet basis, compared to 9 million in its guidance from July 29, 2026, following the revision in September of its annual quota by the Indonesian government. The product mix will, however, be largely composed of laterites in the fourth quarter.
Most of these sales are expected in November and December, with cash inflows primarily in early 2027. Other operational targets are confirmed, including lithium production of 17 to 20 kt-LCE, and investments remain estimated between €250 million and €290 million in 2026.
The EBITDA range is based on a lithium price assumption of approximately $13,000/t-LCE in the fourth quarter, compared to an average of $20,389/t-LCE over nine months. For LME nickel, the assumption retained is $16,000/t, compared to $17,371/t on average over nine months.
On the financing side, three subscription agreements were signed on October 23 with the State Holdings Agency and Sorame-CEIR. On October 26, the AMF granted the APE a waiver from the mandatory public offer. The capital increase with preferential subscription rights must take place before year-end, subject in particular to market conditions.
Subject to its completion, the group targets adjusted leverage below 3.0 times and gearing below 100% by end of December. It will resume dividend payment only once adjusted leverage returns below 1 times.
