Umicore Reports 22% Decline in 2024 EBITDA Amid Challenges in Battery Materials and Recycling

Belgian recycling and smelting company Umicore reported a 22% drop in adjusted EBITDA for 2024, reaching 763 million euros. While the catalysts segment remained profitable, the battery materials business saw a significant downturn, and recycling profits also declined. The company forecasts its 2025 EBITDA to be between 720 million and 780 million euros, with catalysts and battery materials expected to remain stable while recycling is projected to decline further.

In 2024, EBITDA for the catalysts segment fell 1% to 431 million euros. Despite the slight decrease, it remained near record levels due to successful efficiency measures, even amid a challenging market for automotive catalysts.

The battery materials segment recorded a 500 million euro loss, a sharp contrast to the 149 million euro profit of the previous year. The decline was driven by lower sales of cathode materials, linked to a slowdown in the electric vehicle market, as well as the financial burden of past investments in production expansion.

The recycling business saw a 12% drop in EBITDA, reaching 326 million euros, mainly due to reduced volumes in precious metal refining. Specialty materials also fell 12% to 97 million euros.

Capital expenditures for 2024 declined 35% to 555 million euros. As part of a strategic review of its battery materials business, Umicore temporarily suspended construction of a battery materials plant in Canada.