Imerys reports results for the first half 2025 showing stable sales on a comparable basis amid US tariff-driven slowdown in global demand

¹_{The definition of alternative performance measures can be found in the glossary at the end of the press release}

²_{Mainly attributable to the disposal of the assets serving the paper market (July 2024), and the acquisition of perlite and diatomite business (January 2025)}

³_{Share of net income from joint ventures contributes 0.6 percentage point (pp) and 0.6 pp to Q2 2025 and H1 2025 adjusted EBITDA margin, respectively (2.9 pp in Q2 2024, 4.4 pp in H1 2024)}

Outlook

Operating in a world characterized by heightened geopolitical and macroeconomic uncertainties, the Group targets an adjusted EBITDA in the range of €540 to €580 million for the year 2025, assuming no material deterioration in the current macroeconomic environment. Imerys expects volumes to turn positive in H2 2025 vs last year. Despite an increasingly unpredictable global environment, the Group remains confident in navigating these challenges with discipline, focus, and a long-term view.

Progress update on Emili project

The completion of the Pre-Feasibility Study (PFS) confirms the strong fundamentals of Imerys’ Emili lithium project in Beauvoir (Allier, France).

• A world-class lithium deposit. The results of the drilling campaigns and the geological and mining assessments show that the Beauvoir deposit is significantly larger and has a higher grade of lithium oxide than previously expected, with inferred and indicated resources reaching a total of 373 millions tonnes at 1.0% lithium oxide (Li₂O). Drilling has also evidenced a core of 69 million tonnes at 1.22% Li₂O, making the potential exploitation particularly attractive. The deposit has not yet been fully drilled, suggesting additional resources.
• This level of resources would support a 50-year life of mine with a target production of 34,000 tonnes of lithium hydroxide per year. This positions the Beauvoir deposit among the 5 largest known hard rock deposits in the world.
• Production processes fully validated. All process development and technology testing have been completed in continuous piloting mode in a dedicated laboratory, producing nearly one tonne of battery-grade lithium hydroxide to date.
• Environmentally and socially responsible lithium production goals upheld.
  • Imerys confirms that thanks to the French energy mix and technical solutions aiming at containing future CO₂ emissions, the Emili project’s lithium production will achieve approximately half the CO₂ emissions⁴ of the average existing hard rock lithium operations globally. Water consumption is also confirmed to rank among the lowest worldwide⁵.
  • Building on the successful completion of the public debate in 2024, Imerys is actively engaging with local, regional and national stakeholders. Imerys is preparing to adopt the Initiative for Responsible Mining Assurance (IRMA) standards, the highest in mining, as committed to when launching the Emili project in 2022.
  • Once fully operational, the project is expected to support locally 1,500 direct and indirect jobs and deliver significant economic benefits for the local communities and for France.
• Lithium cash cost projections narrowed, ensuring project competitiveness. The cash cost of the lithium produced at Beauvoir would be in the lower end of the €7-9/kg range announced previously. This estimated cost would position the Emili project in the second quartile of the global cost curve.
• The PFS has revised the project's construction costs up to €1.8 billion, mainly due to ESG compliance enhancements and inflation. It has been confirmed that the project is eligible for an investment tax credit of €200 million (C3IV). Moreover, opportunities have been identified to substantially reduce this amount through further engineering improvements and outsourcing, while additional subsidy opportunities are currently being pursued.
• Attractive return confirmed. Long-term lithium price market forecasts continue to support the project's attractive return profile, ensuring its alignment with the Group's value creation goals.
• Commercial production is now planned for 2030. The duration of the public debate and certain permitting considerations have delayed the potential start of commercial production to 2030. The final investment decision on the construction of the commercial plant will have to be taken by the end of 2027.

Furthermore, being designated a Project of Major National Interest in France and now a Strategic Project by the European Union under the "Critical Raw Material Act", Emili is positioned to access European funding and an accelerated permitting process.

Next steps

The permitting process for the industrial pilot plant is ongoing with the goal of obtaining all necessary permits by the end of Q3 2025.

Given the current lithium market conditions and the size of the capex required, Imerys has decided to explore partnership options.

⁴CO2 emissions expected at 3.9 tCO2/tLHM for scope 1 and 2 and approximately 10 tCO2/tLHM for scope 1, 2 and 3

⁵Source: Minviro, Imerys
 

Commentary on the results

Revenue

Revenue in the second quarter of 2025 was €886 million, a 1.5% year-on-year decrease at constant scope and exchange rates. Group sales volumes were down 3.3% reflecting a soft economic environment, penalized by high interest rates and business uncertainties caused by fluctuating US tariff policies. European demand weakness persisted, particularly in the automotive sector. Prices held up well. 

Revenue in the first semester 2025 was €1,757 million, reflecting flat organic growth, as lower sales volumes (mainly in Europe) were offset by price increases across all geographies. The Graphite and Carbon business posted a strong 21% year-on-year organic growth.

Adjusted EBITDA 
 

Adjusted EBITDA for both Q1 and Q2 2025 was impacted by a lower contribution from joint ventures, as expected, and the perimeter effect reflecting the divestiture of assets serving the paper market, completed in July 2024.

Second quarter 2025 adjusted EBITDA was €154 million, with joint ventures' contribution down €23 million vs Q2 2024, and a negative €18 million perimeter effect. Our underlying business performance remained solid and consistent with last year.

H1 2025 adjusted EBITDA totaled €281 million, reflecting a €71 million decrease in joint venture contributions and a perimeter effect of -€34 million.

Imerys achieved an adjusted EBITDA margin of 16.0% in the first half, benefiting from stronger performance in Graphite & Carbon, resilient Performance Minerals businesses, and continued cost control efforts. 

Current net income

In the second quarter, current net income, Group share decreased by 42.6% and by 52.3% in the first half compared to last year. This can be attributed to lower current operating income after tax versus the prior year, reflecting the perimeter change and lower contribution of joint ventures.
 

Net income

Net income, Group share, totaled €47 million in the second quarter of 2025, after other income and expenses of -€5 million. 

Net income, Group share totaled €70 million for the first six months of 2025, vs €142 million the previous year reflecting the decrease in current net income, partly offset by lower other income and expenses.

⁶Share of net income from joint ventures contributes 4.4 and 0.6 percentage points to H1 2024 and H1 2025 adjusted EBITDA margin, respectively

Net current free operating cash flow

Net current free operating cash flow for the first half of 2025 totaled €40 million. The decrease compared to prior year is primarily due to a lower profitability and significantly reduced dividends from joint ventures, partially offset by a decrease in capital expenditure.

For the full year, net current free operating cash flow should benefit from improved operating working capital and lower capital expenditures. Excluding strategic capex, these are expected to be below €270 million, vs €291 million in 2024.

Financial structure

As of June 30, 2025, net financial debt totaled €1,410 million. The €135 million increase compared to December 31, 2024 is mainly due to dividends payment for €123 million in May 2025. 

Net financial debt to adjusted EBITDA amounted to 2.5x to be compared with 1.9x at the end of last year. 

The Group's financial strength is demonstrated by the "Investment Grade" ratings confirmed by Standard and Poor's (December 17, 2024, BBB-, stable outlook) and Moody's (April 11, 2025, Baa3, stable outlook).

⁷Based on the last twelve months adjusted EBITDA

Performance by activity

Performance minerals

_{*Reported variation}

First semester 2025 revenue generated by Performance Minerals reached €1,056 million, showing a slightly positive organic growth vs last year, benefiting from supportive pricing across all regions. 

Revenue in the Americas was up 1.3% at constant scope and exchange rates, reaching €444 million in H1 2025. Volumes were slightly down (-0.5% vs H1 2024) as the construction sector was penalized by high interest rates and business uncertainties. Revenue in the second quarter 2025 was €222 million. Organic growth is flat as price increases mitigate the impact of softer volumes.

Revenue in Europe, Middle East, Africa and Asia-Pacific shows a slight decrease of 1.0% at constant scope and exchange rates in H1 2025 compared to the prior year. This was primarily due to a 1.9% decline in volumes, reflecting low activity in the automotive and painting/coating industries, partially offset by a positive filtration business. A similar trend characterized Q2 with revenue decreasing by 1.8% at constant scope and exchange rates.

Performance Minerals H1 2025 adjusted EBITDA stood at €186 million, in line with 2024 at comparable FX rate and perimeter, thanks to a good operational leverage. 

Solutions for Refractory, Abrasives and Construction

_{*Reported variation}

Revenue generated by Solutions for Refractory, Abrasives and Construction in the first semester of 2025 reached €580 million, a 5% decrease compared to the previous year at constant scope and exchange rates. Sales to the refractory market were particularly impacted by low industrial activity in Europe, heightened Chinese competition and, to a lesser extent, lower industrial activity in the US. Construction end-markets held up well. The second quarter saw a similar trend, with further uncertainties caused by the US tariff policy. Prices held up well.

Adjusted EBITDA decreased in absolute value and as a percentage of sales, impacted by the volume drop. A positive price/cost balance and cost-saving actions helped mitigate this impact.
 

Solutions for Energy Transition

The Graphite and Carbon business generated revenue of €123 million in H1 2025, confirming in Q2 the good start for the year. Sales growth is driven by robust end markets, mainly electric vehicles and conductive polymers, market share gains and new product launches. Adjusted EBITDA improved thanks to this significant sales volume increase.

The Quartz Corporation (high-purity quartz joint venture, 50% owned by Imerys) generated €82 million revenue (at 100%), a 69.1% drop versus last year’s exceptional first half. The performance remains affected by a very disturbed solar value chain, with persistent high inventories, even if activity improved progressively in Q2. Net income fell sharply to €12 million.
 

_{*Reported variation}

_{**For the definition of TQC’s EBITDA, see Imerys 2024 Universal Registration Document}

2025 first semester results webcast 

The press release is available on the Group’s website www.imerys.com. The Group will hold a live webcast to discuss the first semester 2025 results at 6.30 PM (CET) on July 29, 2025, which can be accessed via this link.

Financial Calendar

These dates are subject to change and may be updated on the Group’s website https://www.imerys.com/finance 

*For the appendix, download the PDF version of press release

Imerys is the world’s leading supplier of mineral-based specialty solutions for the industry with €3.6 billion in revenue and 12,400 employees in 46 countries in 2024. The Group offers high value-added and functional solutions to a wide range of industries and fast-growing markets such as solutions for the energy transition and sustainable construction, as well as natural solutions for consumer goods. Imerys draws on its understanding of applications, technological knowledge, and expertise in material science to deliver solutions which contribute essential properties to customers’ products and their performance. As part of its commitment to responsible development, Imerys promotes environmentally friendly products and processes in addition to supporting its customers in their decarbonization efforts.

Imerys is listed on Euronext Paris (France) with the ticker symbol NK.PA.

More comprehensive information about Imerys may be obtained from its website (www.imerys.com) in the Regulated Information section, particularly in its Registration Document filed with the French financial markets authority (Autorité des marchés financiers, AMF) on March 26, 2025 under number D.25-0161 (also available from the AMF website, www.amf-france.org). Imerys draws investors’ attention to chapter 2 “Risk Factors and Internal Control” of its Registration Document.

Disclaimer: This document contains projections and other forward-looking statements. Investors should be aware that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.

Analyst/Investor Relations:

Cyrille Arhanchiague : +33 (0)6 07 16 67 26 
finance@imerys.com 
 

Press contacts:

Mathieu Gratiot : +33 (0)7 87 53 46 60
Hugues Schmitt (Primatice) : + 33 (0)6 71 99 74 58
Olivier Labesse (Primatice) : + 33 (0)6 79 11 49 71