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Struggling miner Eramet slumps after 'disastrous' 2025 triggers capital increase

Published by Global Banking & Finance Review®

Posted on February 19, 2026

2 min read

Last updated: February 19, 2026

Struggling miner Eramet slumps after 'disastrous' 2025 triggers capital increase - Finance news and analysis from Global Banking & Finance Review

Tags:corporate governance

Quick Summary

Eramet 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.

Eramet Shares Tumble After 'Disastrous' 2025 Sparks Capital Raise

Share Price Reaction

Eramet’s 2025 Results and Capital Measures

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.

Earnings and Financing Actions

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.

Analyst Commentary

"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.

French State Support

"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.

Management Upheaval

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.

Exchange Rate Note

($1 = 0.8475 euros)

(Reporting by Lucie Barbier in Gdansk, editing by Milla Nissi-Prussak)

Key Takeaways

•Eramet shares fell about 20–22% on Feb 19, 2026 after reporting weak 2025 results.
•Adjusted EBITDA dropped 54% year over year to €372 million amid price and operational headwinds.
•The miner plans a roughly €500 million capital increase in 2026 and potential asset monetization.
•Dividends are suspended for two years while capex is tightened to stabilize the balance sheet.
•Governance turmoil deepened after the CEO was fired and the CFO was suspended earlier in February.

Frequently Asked Questions about Struggling miner Eramet slumps after 'disastrous' 2025 triggers capital increase

1What is the main topic?

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.

2Why did Eramet’s earnings decline?

Lower commodity prices, currency headwinds, and operational issues—particularly in Indonesia—drove a 54% drop in adjusted EBITDA to €372 million.

3What governance issues are affecting Eramet?

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.

Eramet’s 2025 Results and Capital Measures

Earnings and Financing Actions

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.

Analyst Commentary

Any improvement without support from recovering key end-markets remains unlikely, Sikka added in the research note.

French State Support

Management Upheaval

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.

Exchange Rate Note

($1 = 0.8475 euros)

(Reporting by Lucie Barbier in Gdansk, editing by Milla Nissi-Prussak)

Key Takeaways

•Eramet shares fell about 20–22% on Feb 19, 2026 after reporting weak 2025 results.

•Adjusted EBITDA dropped 54% year over year to €372 million amid price and operational headwinds.

•The miner plans a roughly €500 million capital increase in 2026 and potential asset monetization.

•Dividends are suspended for two years while capex is tightened to stabilize the balance sheet.

•Governance turmoil deepened after the CEO was fired and the CFO was suspended earlier in February.

Frequently Asked Questions

1What is the main topic?

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.

2Why did Eramet’s earnings decline?

Lower commodity prices, currency headwinds, and operational issues—particularly in Indonesia—drove a 54% drop in adjusted EBITDA to €372 million.

3What governance issues are affecting Eramet?

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.