{"id":11624,"date":"2026-02-18T12:04:10","date_gmt":"2026-02-18T12:04:10","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/11624\/"},"modified":"2026-02-18T12:04:10","modified_gmt":"2026-02-18T12:04:10","slug":"glencore-h2-earnings-call-highlights","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/11624\/","title":{"rendered":"Glencore H2 Earnings Call Highlights"},"content":{"rendered":"

\"Glencore Glencore logo <\/p>\n

Glencore reported $13.5 billion of adjusted EBITDA for 2025 with a strong H2 recovery (group up ~50% H1\u2192H2; industrial up 65%), as metals\u2014particularly copper and zinc\u2014more than offset weaker energy and coal.<\/p>\n

Management reiterated a long\u2011term copper growth plan (from ~1Mt toward ~1.6Mt by 2035, with upside >2Mt), completed the Antamina\/Quechua deal, and signed a non\u2011binding MoU on DRC assets while securing a KCC land lease to support ~300,000 tpa expansion potential.<\/p>\n

Balance\u2011sheet and capital return priorities included funds from operations of $8.7 billion, net debt essentially flat, a declared $2 billion dividend (>$27 billion returned since 2021), and CapEx guidance $26\u2013$28 billion for 2026\u20132028, alongside a $1 billion HMRC payment recorded as an income tax receivable expected to be largely recovered.<\/p>\n

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Glencore (LON:GLEN) reported what CEO Gary Nagle described as a \u201cvery good year\u201d for 2025, highlighted by a strong second-half recovery and strength in its metals business. The company posted $13.5 billion of adjusted EBITDA for the year, with roughly $10 billion coming from the industrial division and $2.9 billion from marketing.<\/p>\n

Nagle said the first half of 2025 was weak as expected, but the year ended \u201cvery strongly.\u201d CFO Steven Kalmin underscored the second-half momentum, noting the business saw a \u201c50% increase\u201d when comparing H1 to H2 across the group, with industrial up 65% in the second half and marketing also improving.<\/p>\n

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Management attributed the industrial performance primarily to metals, with Nagle calling out copper and zinc as particularly strong contributors. Kalmin said the year-over-year price variance within industrial reflected a +1.9 contribution from metals, partially offset by a -2.4 hit in coal.<\/p>\n

Kalmin said copper prices averaged 9% higher year over year, and copper contributed $1 billion of the metals price variance. Zinc also improved, with Kalmin pointing to strong zinc pricing and meaningful support from gold by-products, especially at Kazinc. He said the zinc business improved by about $1 billion year over year, including $800 million from zinc itself, of which $500 million came from Kazinc.<\/p>\n

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On the other hand, Nagle said energy and steelmaking coal were weaker amid lower prices, especially in the first half, though he said the company remained \u201cvery cash generative\u201d due to product quality. He noted coal markets improved toward the end of 2025 and into 2026, citing:<\/p>\n

Weiterlesen <\/p>\n

Energy coal strength linked to Indonesian export cuts, with Newcastle pricing rising above $120 per tonne.<\/p>\n

Steelmaking coal spot prices reaching about $250, with forward prices in the $220s, supported by Queensland weather impacts and stronger Indian demand.<\/p>\n

Nagle also said Glencore may consider its own energy coal production cuts despite higher prices, describing supply discipline as \u201calways on the table,\u201d particularly in Australia.<\/p>\n

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Glencore\u2019s marketing division delivered $2.9 billion of adjusted EBIT, which Nagle said sits around the middle of the company\u2019s updated earnings range. He emphasized that the updated range excludes Viterra trading profits from prior periods, making the 2025 outcome \u201cmaterially higher\u201d on a like-for-like basis compared to historical performance.<\/p>\n

Management said marketing strength was driven by metals\u2014particularly copper\u2014where \u201ctrade dislocations,\u201d regional arbitrage, and a tight concentrate market created opportunities. Trading conditions in energy and steelmaking coal were weaker for much of the year, though Nagle said opportunities began returning around September and October, with a better start to 2026.<\/p>\n

Nagle revisited Glencore\u2019s longer-term copper growth ambitions discussed at its December presentation, reiterating the company\u2019s levers to grow from a roughly 1 million tonne base toward ~1.6 million tonnes by 2035, with potential to exceed 2 million tonnes depending on project sequencing.<\/p>\n

Key updates included:<\/p>\n

Antamina (Peru): Glencore completed the acquisition of Quechua, adjacent to Coroccohuayco\/Antamina, which management said increases optionality and helps resolve access constraints.<\/p>\n

DRC: Glencore signed a non-binding MoU with U.S. government-backed Orion CMC related to its KCC and Mutanda operations. Kalmin said it was too early to outline exact cash flow impacts given the structure is still being developed and due diligence is beginning. Nagle also said the long-discussed KCC land package has been secured through a long-term lease (rather than a land purchase), which he said has the same financial impact and access rights as the prior structure and supports expansion back toward ~300,000 tonnes of copper per year with mine life \u201cwell into the 2040s.\u201d<\/p>\n

Argentina: The company is progressing RIGI approvals for Mara and El Pach\u00f3n. Nagle said Mara\u2019s approval is expected before Pach\u00f3n\u2019s, with Mara potentially received in the first half of the year. Glencore has begun work on Minera Alumbrera as an enabler for Mara and expects first production in 2028.<\/p>\n

Minnesota JV: At NewRange, management said additional drilling increased the resource base by approximately 1 billion tonnes and that the project is moving through permitting.<\/p>\n

Outside of copper, Nagle highlighted portfolio \u201cmonetization\u201d and simplification steps, including a partial sale of Glencore\u2019s stake in Century Aluminum while retaining what he called a meaningful holding. He also cited the sale of the C\u00e9sar smelter in the Philippines and the sale of an underutilized Colombian port near Santa Marta that had been built to serve the former Prodeco mines.<\/p>\n

Kalmin said net debt finished the year essentially unchanged, noting the company generated $8.7 billion of funds from operations. He highlighted a $1 billion HMRC-related payment tied to legacy matters that is recorded as an income tax receivable, with management expecting a \u201csignificant portion\u201d to be recovered through an ongoing U.K.-Swiss resolution process.<\/p>\n

On capital returns, management said Glencore declared a $2 billion dividend. Nagle said the company has returned more than $27 billion to shareholders since 2021. In the Q&A, management said it opted for more cash returns after receiving shareholder feedback, while keeping buybacks \u201cfirmly on the table.\u201d<\/p>\n

Kalmin reiterated CapEx guidance of $26\u2013$28 billion over the 2026\u20132028 period, consistent with the company\u2019s prior CMD, and said Glencore continues to see strong momentum moving into 2026. Nagle closed by outlining 2026 priorities including safety, operational excellence, organic growth de-risking, balance sheet strength, and shareholder value creation. He noted the company recorded two fatalities in 2025, which he called \u201ctwo too many,\u201d while also stating this represented the lowest fatality count the business has recorded.<\/p>\n

In Q&A, management said it has received \u201czero incoming\u201d from shareholders about revisiting a coal spin-off after a previous consultation, and described coal as a cash-generative \u201cbedrock\u201d for returns. Nagle also confirmed discussions with Rio Tinto did not progress due to valuation differences, while emphasizing Glencore\u2019s standalone growth pipeline and improving operating delivery.<\/p>\n

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today. With over 150,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 50 offices.<\/p>\n

The article “Glencore H2 Earnings Call Highlights<\/a>” was originally published by MarketBeat.<\/p>\n","protected":false},"excerpt":{"rendered":"Glencore logo Glencore reported $13.5 billion of adjusted EBITDA for 2025 with a strong H2 recovery (group up…\n","protected":false},"author":2,"featured_media":11625,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[4472,8740,8739,132,8741],"class_list":{"0":"post-11624","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-glencore","8":"tag-copper-and-zinc","9":"tag-copper-prices","10":"tag-gary-nagle","11":"tag-glencore","12":"tag-steven-kalmin"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/11624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=11624"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/11624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/11625"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=11624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=11624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=11624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}