Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: April 3, 2026
Add as preferred source on GoogleEramet shares sank about 22% after a 'disastrous' 2025. The miner plans a €500m capital increase and asset sales after EBITDA fell 54% to €372m, with dividends frozen for two years amid governance turmoil.
Feb 19 (Reuters) - Shares of France's Eramet plunged 22% on Thursday, a day after the struggling miner posted a big drop in annual earnings and said it was planning a capital increase and asset sales to shore up cash.
The mining and metallurgical group reported on Wednesday an adjusted core profit of 372 million euros ($439 million), down 54% from 2024, dragged down by a range of unfavourable conditions from low prices to production setbacks in Indonesia.
It also said it would not pay dividends for the next two years, setting the shares on track for their worst trading day since December 2018.
"Disastrous 2025 which prompted sweeping corrective actions," analyst Varun Sikka from AlphaValue said in reference to the 500-million-euro capital hike and possible stake sales, which also followed a rise in the company's debt.
Any improvement without support from recovering key end-markets remains unlikely, Sikka added in the research note.
"The only possible reason they may stay afloat amid this mess is largely due to the French State's unflinching support," the analyst said, adding the government could also be a big sponsor for the cash call.
Eramet is in the midst of a management crisis after it fired former CEO Paulo Castellari and suspended finance chief Abel Martins-Alexandre within a few days earlier this month.
($1 = 0.8475 euros)
(Reporting by Lucie Barbier in Gdansk, editing by Milla Nissi-Prussak)
Eramet’s share price plunged after weak 2025 results prompted a plan for a €500 million capital increase, asset sales, and a two‑year dividend suspension.
Lower commodity prices, currency headwinds, and operational issues—particularly in Indonesia—drove a 54% drop in adjusted EBITDA to €372 million.
The company is in a governance crisis following the firing of CEO Paulo Castellari and the suspension of CFO Abel Martins‑Alexandre earlier in February.
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