OM (OMH) H1 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was US$309.3 million, marginally up 0.3% year-over-year, driven by higher manganese ore volumes and prices but offset by lower alloy volumes and weaker ferrosilicon prices.

• EBITDA for H1 2025 was US$19.1 million, down from US$46.6 million in H1 2024, with a net loss after tax of US$9.6 million compared to a net profit of US$12.9 million in 1H 2024.

• Gross profit margin compressed to 7% from 19% due to weak ferrosilicon and alloy prices, partially cushioned by higher manganese alloy margins.

• Operations are anchored by a large, efficient smelter in Sarawak, supported by affordable, renewable hydropower and strong customer relationships.

• Maintained positive cash flow and advanced sustainability initiatives, including ISO certifications and slag repurposing.

Financial highlights

• Revenue for 1H 2025 was US$309.3 million, nearly flat year-over-year; EBITDA declined to US$19.1 million from US$46.6 million; net loss attributable to owners was US$9.5 million.

• Cash flow from operations was US$34.6 million, down from US$69.4 million in 1H 2024; cash and cash equivalents at period end were US$31.7 million.

• Loan repayments totaled US$205.8 million, significantly higher than US$54.4 million in 1H 2024.

• Distribution costs decreased by 24% due to lower freight rates; administrative expenses rose 5% to US$7.8 million.

• Finance costs decreased 20% to US$11.9 million due to lower borrowings and successful refinancing.

Outlook and guidance

• Ferrosilicon prices declined 10.4% year-over-year but are expected to stabilize; manganese alloy prices are expected to remain firm through early 2026.

• FY2025 FeSi production guidance: 81–101 kmt; Mn alloy production guidance: 116–146 kmt.

• Major maintenance for 2 FeSi furnaces scheduled for 2025 is on track.

• No major supply or demand disruptions anticipated in the near term; ongoing efforts to optimize costs and manage working capital.