Eramet's H1 2026: A Turnaround in Motion
EBITDA up 45%, lithium at 90% capacity, and a clear path to a stronger balance sheet
ERA.PA · Earnings Call · 2026-07-30
A Sharp Operational Turnaround
After a challenging 2025, Eramet's first half of 2026 delivered the kind of numbers management had promised. Adjusted EBITDA rose 45% year-on-year to EUR 276 million, driven almost entirely by intrinsic performance—the lithium ramp-up, better manganese ore volumes, and productivity gains. The group also returned to positive adjusted free cash flow (EUR 7 million) after a big cash consumption last year, and CapEx was cut 53% to EUR 100 million. As CEO Christel Bories put it: “We delivered a stronger operational performance, which translated into a 45% increase in our adjusted EBITDA.” — Christel Bories, CEO · 2026-07-30 The improvement isn't just about the headline: CFO Simon Henochsberg noted that “This positive EBITDA performance, combined with lower CapEx and good cash management allowed us to have a positive free cash flow – adjusted free cash flow for the semester.” — Simon Henochsberg, CFO or Finance Director · 2026-07-30 That cash flow allowed net debt to remain stable at EUR 2 billion, bringing leverage down to 4.5x—a first step, but one that still leaves the balance sheet stretched.Lithium: From Bet to Engine
The most striking change is lithium. The DLE plant at Centenario reached 90% of nameplate capacity in June, twelve months after ramp-up began. Bories highlighted: “The lithium business unit reached 90% nameplate capacity in June, in line with schedule, contributing positively both to EBITDA and cash this semester.” — Christel Bories, CEO · 2026-07-30 The unit is now generating positive free cash flow (EUR 32 million in H1), a complete reversal from the heavy cash burn of 2025. Management is already studying a brownfield expansion to 35,000 tonnes, targeting FID by end-2027, and sees the asset as world-class—a view backed by a cash cost firmly in the first quartile of the cost curve. This is clearly a new phase for the company. In the prior call, the funding plan was still a promise; now it is delivering. In February, Bories described the capital increase as part of the plan: “Just on the capital increase that we have shown in the third pillar of the funding plan is at the group level.” — Christel Bories, Interim CEO · 2026-02-19 The EUR 500 million capital increase has now been approved by shareholders and is targeted for Q4. The capital increase remains a critical milestone, but the operational turnaround reduces the urgency.Headwinds Persist: Senegal and Weda Bay
Not everything is smooth. The fire at Eramet Grande Cote in February forced a full suspension of operations from late March to late April; the plant restarted at only 30% capacity and full production is not expected until Q1 2027. The incident triggered an impairment test that cut the carrying value of the asset and reduced reserves, pushing net income to a EUR 146 million loss for the half. The net cash impact of the fire is estimated at EUR 45 million after insurance proceeds. At Weda Bay, the Indonesian government's restriction on mining permits to 12 million tonnes (down from the usual level) forced the mine into care and maintenance in May. As Bories explained, this is not just an Eramet problem:The company has filed for an upward revision, but timing and volumes remain uncertain. No dividends were received from Weda Bay in H1. The IWIP Industrial Park downstream continues to consume ore, but the supply-demand gap is real.On Weda Bay, I share your view. It's very difficult also for us to manage a mine with these ups and downs in the permit allocation... We have obviously reported those issues to the authorities.
Gabon: Progress on the Ground
In Gabon, the railway overhaul is paying off: transport capacity rose 9% in H1, allowing a 6% increase in manganese ore volumes. A new EUR 225 million financing for Setrag will support further expansion. In July, Eramet signed an MOU with Gabonese authorities to map out a transformation roadmap, though specific projects like a possible manganese smelter are still at the study stage.A Funding Plan, Executed Step by Step
The three-pillar funding plan—operational improvement, asset monetization, and the capital increase—is progressing. Asset monetization remains on track, with several options under consideration and an expected execution towards year-end. As Bories said in February: “it is part exactly of what we call the asset monetization” — Christel Bories, Interim CEO · 2026-02-19—a recurring theme that now appears closer to fruition. The Eramet Grande Cote incident and Weda Bay permitting issues are headwinds, but the operational momentum and the clear path to a stronger balance sheet give management confidence. Bories concluded:That confidence is now backed by numbers, not just promises.we enter the second half with confidence, thanks to this strong, I mean, delivery in H1, but also with the pace and discipline needed to deliver the key remaining milestones.