Aurubis Increases 2025/26 Forecast Based on Recent Quarterly Performance

Why It Matters

The upgraded guidance highlights Aurubis' growing profitability in a tightening metals market, reinforcing its position as Europe’s leading copper recycler and attracting investor confidence.

Key Takeaways

• Forecasted EBT now €425‑525 million ($500‑618 million) for FY2025/26.
• Q2 EBT rose 15% to €121 million ($142 million) versus Q1.
• Sulfuric acid sales and high metal prices drive earnings uplift.
• New smelter in Georgia and Richmond expansion add 90,000 tons capacity.

Pulse Analysis

The global push for decarbonisation has amplified demand for secondary metals, positioning copper recyclers at the heart of supply chains. Over the past year, copper and precious metal prices have surged to multi‑year highs, driven by constrained primary production and heightened infrastructure spending. This price environment benefits firms that can convert scrap into high‑purity output, as the margin between recycled and virgin metal widens. Moreover, the by‑product sulfuric acid market has tightened, with industrial users willing to pay premiums for a reliable supply, adding another revenue stream for integrated recyclers.

Aurubis' latest numbers reflect these macro trends. The German‑based recycler posted a preliminary second‑quarter operating EBT of €121 million, a 15 percent jump from the prior quarter, while EBITDA climbed to €187 million. Although six‑month EBT of €226 million lagged slightly behind the previous year, the 3 percent EBITDA increase underscores operational resilience. Higher metal prices, especially for precious metals, lifted the metal result, and sulfuric acid sales exceeded the already elevated prior‑year level. The company also noted modest gains from copper product sales, offset by lower treatment and refining charges and higher depreciation from ongoing capital projects.

The upgraded FY2025/26 outlook is anchored in Aurubis' expansion strategy. The newly commissioned multimetal smelter in Augusta, Georgia, and the ramp‑up at the Richmond facility, which will add roughly 90,000 tons of capacity, broaden the firm’s geographic footprint and diversify its product mix. These assets enhance the ability to process a wider range of concentrates, improving throughput and profitability. For investors, the raised EBT guidance signals stronger cash generation potential and may justify a premium valuation relative to peers. In a market where sustainable sourcing is increasingly mandatory, Aurubis' forward‑looking projects position it to capture long‑term growth.