Boliden (BOL) Q1 2025 earnings summary

Executive summary

• Operating profit excluding process inventories rose to SEK 2,599m from SEK 1,212m year-over-year, despite negative impacts from Finnish strikes and lower volumes in Aitik.

• Revenues increased 14% year-over-year to SEK 21,121m, with net profit up to SEK 2,192m (SEK 7.99/share).

• Free cash flow was negative at SEK -1,869m, mainly due to higher working capital and investments.

• Acquisition of Somincor and Zinkgruvan closed April 16, 2025, with integration ongoing and SEK 3.75bn raised via directed share issue.

• Major projects, including Odda expansion and Tara ramp-up, are progressing as planned.

Financial highlights

• Operating profit (ex. inventory revaluation) more than doubled year-over-year to SEK 2,599m; EBIT including process inventories was SEK 3.1bn.

• Revenues reached SEK 21,121m, with earnings per share at SEK 7.99.

• Capex for the quarter was SEK 2,896m; investments totaled SEK 2.9bn.

• Net debt at SEK 8.7bn, net debt/equity ratio at 13% after equity raise.

• Free cash flow was negative SEK 1,869m, mainly due to seasonal working capital build-up.

Outlook and guidance

• Full-year capex guidance raised to SEK 15.5bn, mainly due to Somincor and Zinkgruvan.

• Q2 will include a one-off advisory fee and heavy maintenance for smelters and mines; SEK -500m EBIT impact expected in 2025.

• Insurance cash flow of SEK 2bn expected in 2025 (SEK 350m received in Q1).

• Aitik and Tara full-year milled volume guidance: 40 Mtonnes and 1.8 Mtonnes, respectively.

• Market conditions have softened in Q2, with negative price and terms development.