Metlen's H1 2026: Gallium Ignites a Diversified Comeback
Strong results, massive deleveraging, and a strategic pivot into critical raw materials and defense.
MYTHF · Earnings Call · 2026-08-06
The Comeback: Metlen's H1 2026
Metlen Energy & Metals reported a stellar H1 2026, marking a clear departure from the profit warnings that plagued 2025. Sales jumped 11% to €4 billion, EBITDA rose 23% to €550 million, and net profit attributable to shareholders climbed 23% to €313 million. The CEO, Evangelos Mytilineos, opened the call with a message of resilience: “Sales increased by 11% to almost EUR 4 billion. Group EBITDA rose by 23% to EUR 550 million and net profit attributable to shareholders increased by 23% to EUR 330 million.” — Evangelos Mytilineos, Chairman · 2026-08-06 But the real story is what lies beneath these numbers — a strategic pivot into critical raw materials, defense, and infrastructure, and a balance sheet restored to health.Gallium: The Cost of a New Era
The most striking development is the signing of the first commercial gallium offtake agreement. Mytilineos revealed that the international price for gallium has skyrocketed from $800 per kilo at the Capital Markets Day to $3,250 today. He stressed the unusual contractual structure: “The high price at the moment is $3,250. At that time, it was $800. You can make your calculations.” — Evangelos Mytilineos, Chairman · 2026-08-06 The contract includes a price cap well above the current market, a testament to the scarcity of the material. With 50 tonnes of capacity (and a stretch goal of 60), Metlen is positioning itself as a cornerstone of Europe's critical minerals strategy. The creation of M-CRM (Metlen Critical and Rare Metals) unifies gallium, scandium, germanium, and circular metals under one platform, making this a company-unique initiative.Legacy Projects: The Worst Is Behind
The prior year's pain came from legacy EPC projects (the MPP portfolio). CFO Fotini Ioannou confirmed that the company is on track to deliver 11 of 13 projects by year-end, even as it books additional completion costs. She was emphatic: “Given that all these projects will be delivered in 2026, I think the worst is behind us, let me put it that way.” — Fotini Ioannou, CFO · 2026-08-06 This resolution closes the chapter on the profit warnings and restores confidence in execution.Deleveraging: A Cash Machine
Operating cash flow exceeded €800 million, allowing net leverage to fall from 3.1x to 1.7x in just six months. The CFO highlighted disciplined working capital management, including customer prepayments and overdue receivables collection. Mytilineos added to the Q&A:The deleveraging gives Metlen the firepower to fund its investment program, which increasingly skews toward defense modernization and energy storage. The defense business is already scaling: EBITDA is expected to reach €85 million in 2027 from €30 million in 2026. Infrastructure and Concessions nearly tripled EBITDA to €82 million, and the renewal portfolio is diversifying into storage-heavy systems.We did not go to London just to be in the FTSE 100. We are going to London -- we went to London to move way up the ladder of the FTSE 100.