Vale (VALE3) Q1 2026 earnings summary

Executive summary

• Strategy focuses on operational excellence, disciplined capital allocation, and growth in copper and iron ore, with resilience amid geopolitical volatility and a flexible product portfolio driving value capture.

• Achieved record Q1 production in iron ore, copper, and nickel, with operational improvements and higher sales volumes.

• Safety initiatives led to an 80% reduction in high-risk structures and dams at emergency level since 2020, with no dams at the highest emergency level since August 2025.

• Sustainability and decarbonization remain strategic priorities, including the launch of ethanol-powered vessels targeting up to 90% carbon emission reduction by 2029.

• Net operating revenue rose 14% year-over-year to $9.26 billion, with attributable net income up 36% to $1.89 billion.

Financial highlights

• Pro forma EBITDA reached $3.9 billion, up 21% year-over-year, driven by higher volumes and improved price realization.

• Vale Base Metals EBITDA more than doubled to $1.2 billion, despite a $140 million negative provisional price adjustment.

• Recurring free cash flow was $813 million, a 61% year-over-year increase, supporting $2.7 billion in dividends and $0.1 billion in share buybacks.

• Expanded net debt increased to $17.8 billion, mainly due to shareholder remuneration.

• Adjusted EBIT rose 24% year-over-year to $2.99 billion; gross margin stable at 33% year-over-year.

Outlook and guidance

• Iron ore C1 cash cost guidance for 2026 is $20–21.5/t, with all-in costs at $52–56/t; expected at the upper end of guidance due to BRL appreciation and oil prices.

• Copper all-in cost guidance for 2026 is $1.0–1.5k/t; nickel at $12.0–13.5k/t.

• Serra Sul +20 and Compact Crushing projects remain on track for 2H26 start-up.

• Second half of the year expected to show improved cost performance and potential for extraordinary dividends and further buybacks if net debt trends below BRL 15 billion.

• Annual capex guidance maintained at $5.4–5.7 billion.