Nickel Industries (NIC) H2 2025 earnings summary

Executive summary

• Achieved 17.8 million safe man-hours worked in 2025, with LTIFR and TRIFR well below industry averages and multiple ESG awards received.

• Delivered record production in nickel, cobalt, and mine output despite a challenging year with lower nickel prices and industry-wide closures.

• Maintained robust EBITDA and strong operational performance through cyclical lows in nickel pricing.

• Strategic partnership with Sphere, which acquired a 10% stake in the ENC project for US $240m, validating the project's global standing.

• ENC HPAL construction remains on schedule for H1 2026 commissioning.

Financial highlights

• Revenue for 2025 was $1.65 billion, with adjusted EBITDA of $282.8 million, down from $326 million in 2024.

• Q4 EBITDA was impacted by $1.5 million in standby costs due to RKAB quota issues, reducing quarterly EBITDA to $37.5 million from $87 million in Q3.

• Net debt at year-end was $866 million, with cash of $357 million and total debt of $1.2 billion.

• Paid a dividend of $0.015 per share in 2025 and maintained at A$0.04 per share.

• Impairment charge of $8.1 million related to limonite inventory write-down.

Outlook and guidance

• 2026 expected to be significantly stronger, with broker consensus EBITDA forecast at $500 million, but internal estimates suggest $700–$800 million possible if current margins persist.

• ENC HPAL project targeting 72,000–80,000 tons of new nickel units at high margins, with potential for above-nameplate performance.

• Sampala project development progressing, with first production targeted for 2027 and expected to enhance ore self-sufficiency.

• Fully funded growth, minimal sustaining CapEx, and significant tax holidays expected to support future performance.

• Increased Hengjaya Mine sales quota to 14.3 million wmt per annum, supporting additional EBITDA upside.