Nickel Industries Ltd (NICMF) (Full Year 2025) Earnings Call Highlights: Record Production and …

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Mon, February 23, 2026 at 4:00 PM GMT+9 3 min read

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**Revenue:** $1.65 billion for 2025.

**Adjusted EBITDA:** $282.8 million for 2025.

**Net Debt:** $861.8 million as of the end of 2025.

**Dividend:** $0.015 per share paid in 2025.

**Nickel Production:** 134,000 tons in 2025.

**Mine Production:** 19.2 million wet metric tons, with sales of 9.9 million wet metric tons.

**Bond Refinancing:** $800 million raised with a reduced coupon from 11.25% to 9%.

**Cash:** $357 million as of December 31, 2025.

**Debt:** $1.2 billion, including $800 million of unsecured notes maturing September 2030.

**Impairment Charge:** $8.1 million related to limonite inventory.

**RKEF Cash Costs:** Decreased by 1.8% in 2025.

**HPAL Operations:** 8,500 attributable nickel tons and 802 attributable cobalt tons produced.

**MHP Contract Prices:** Increased by 8% to around $14,990 per ton.

**ENC Project Valuation:** $2.4 billion valuation for a 10% interest.

**Market Capitalization:** Approximately $3.1 billion.

**EV/EBITDA Multiple:** 7.1 times based on a $500 million EBITDA estimate for 2026.

**January 2026 EBITDA:** $50 million, with NPI margins increasing significantly.

Warning! GuruFocus has detected 11 Warning Signs with NICMF.

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Release Date: February 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Nickel Industries Ltd (NICMF) achieved 17.8 million safe manhours worked, significantly increasing from previous years, showcasing strong safety performance.

The company received several prestigious ESG awards, including the Best Community Award at the Global CSR & ESG Summit, highlighting its leadership in sustainability.

Despite a challenging market, Nickel Industries Ltd (NICMF) delivered a robust EBITDA of USD 282.8 million, with record production in nickel and cobalt.

Successful bond refinancing raised $800 million, reducing the coupon rate from 11.25% to 9%, indicating strong investor confidence.

The company announced the sale of a 10% interest in the ENC project to SeAH, a strategic partner and SpaceX supplier, endorsing the project's quality.

Negative Points

The LME nickel price decreased by 9.8% compared to 2024, impacting revenue and operating profit.

Net debt remains high at USD 861.8 million, despite efforts to optimize the debt stack.

There was an impairment charge of USD 8.1 million related to the writing down of limonite inventory.

The RKAB license significantly impacted profit and EBITDA, with USD 21.3 million in standby charges due to delays.

Cash costs increased slightly in HPAL operations due to higher sulfur raw costs, affecting margins.

 






Story Continues  

Q & A Highlights

Q: Was there any impact on mining operations due to a recent landslide incident? A: The landslide incident was related to a third-party operation and did not affect Nickel Industries’ mining operations. (Justin Werner, Managing Director)

Q: How does the new RKAB quota affect the ore supply for RKEF and ENC operations? A: The new RKAB quota allows Nickel Industries to meet 100% of the ore requirements for ENC in 2026 and maintain 60% self-sufficiency for RKEF operations. HNC operations are supplied by a third party and are not affected. (Justin Werner, Managing Director)

Q: What are the capital allocation priorities for the next 12 months, considering the high nickel price environment? A: The company plans to focus on debt reduction, potential dividend revisits, and share buybacks. There is a remaining USD46 million payment for ENC and USD20-30 million for the Sampala project development. (Justin Werner, Managing Director)

Q: How does the company plan to manage the 14.5 million ton quota for the year? A: Nickel Industries intends to apply for an increase in the RKAB quota midyear. The company plans to maintain current sales levels and focus on saprolite supply while reducing limonite supply to third parties. (Justin Werner, Managing Director)

Q: Can you clarify the changes in the ENC project’s ownership and the involvement of SeAH? A: SeAH acquired a 10% stake in the ENC project for $2.4 billion, with $30 million in equity and $210 million in debt. Nickel Industries’ stake is now 46%, and the company plans to increase it by 2% to become the largest shareholder. (Chris Shepherd, Chief Financial Officer)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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