Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel (GMKN) H1 2025 earnings summary

Executive summary

• Revenue rose 15% year-over-year to $6.5 billion, driven by higher sales volumes and improved logistics.

• EBITDA increased 12% year-over-year to $2.6 billion, with a 41% margin.

• Net profit grew 2% year-over-year to $842 million.

• Free cash flow nearly tripled to $1.4 billion, with adjusted free cash flow at $224 million.

• Net debt increased 22% year-to-date to $10.5 billion, mainly due to rouble appreciation.

Financial highlights

• Metal sales revenue increased 16% year-over-year to $6.1 billion, mainly from higher volumes and reduced inventories.

• Cost of metal sales rose 19% to $3.2 billion, driven by higher operating costs and depreciation.

• General and administrative expenses increased 15% to $582 million, mainly due to rouble appreciation and higher staff costs.

• Finance costs rose 45% to $553 million, impacted by higher interest rates and currency volatility.

• Income tax expense increased 15% due to a higher statutory tax rate in Russia.

Outlook and guidance

• Nickel market outlook is moderately positive mid-term, with surplus expected to decrease in 2025-2026.

• Copper market faces short-term uncertainty but long-term fundamentals remain strong due to demand from energy and digital sectors.

• Palladium market expected to remain balanced, with demand declines offset by supply reductions.

• Platinum market in moderate deficit, with stable demand and supply risks supporting prices.