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Introduction & Market Context
AMG Advanced Metallurgical Group N.V. ( AMS (VIE:AMS2):AMG) reported strong first-quarter 2025 results, with significant EBITDA growth despite ongoing challenges in the lithium market. The critical materials company, which positions itself as a provider of technologies for a less carbon-intensive world, saw its adjusted EBITDA nearly double year-over-year, primarily driven by exceptional performance in its Technologies segment.
The company operates in a market environment characterized by high volatility in critical materials prices, with lithium prices continuing their downward trend while other materials like antimony showed strength. AMG’s diversified portfolio across lithium, vanadium, and technologies has helped it navigate these market fluctuations.
Quarterly Performance Highlights
AMG reported revenue of $388.1 million for Q1 2025, representing an 8% increase compared to the same period last year. More impressively, adjusted EBITDA jumped 88% year-over-year to $57.8 million, demonstrating the company’s ability to significantly improve profitability despite mixed market conditions.
The company also returned to profitability at the bottom line, with net income attributable to shareholders of $5.0 million in Q1 2025, compared to a net loss of $16.3 million in Q1 2024. This improvement was driven by higher profitability in the current period, as well as the absence of a $7 million intercompany foreign exchange loss and a $2 million one-time cost that affected the prior year period.
As shown in the following chart of quarterly financial performance:
AMG’s financial position remains solid, with total liquidity of $486 million as of the end of Q1 2025. The company’s leverage metrics have also improved, with Total (EPA:TTEF) Net Debt to Adjusted EBITDA ratio decreasing to 2.4x from 2.8x at the end of 2024. Return on Capital Employed increased significantly to 13.4% for Q1 2025, compared to 9.1% for full-year 2024.
Segment Performance Analysis
AMG’s performance varied significantly across its three business segments, with Technologies showing exceptional strength while Lithium and Vanadium faced challenges.
The Technologies segment was the standout performer, with revenue increasing by 34% to $202.3 million compared to Q1 2024. Adjusted EBITDA for this segment more than tripled year-over-year, primarily due to higher profitability in AMG Antimony. The segment also demonstrated strong future potential, with $107 million in new orders during Q1 2025, representing a 1.71x book-to-bill ratio. Order backlog reached a record high of $416 million as of March 31, 2025.
The following chart illustrates the Technologies segment’s impressive performance:
In contrast, the Lithium segment faced significant headwinds, with revenue decreasing by 23% to $32.0 million compared to Q1 2024. This decline was primarily due to a 27% drop in lithium market prices and a 22% decrease in lithium concentrate sales volumes. Despite these challenges, the segment maintained positive adjusted EBITDA, though it decreased by 6% year-over-year.
The Lithium segment’s performance is detailed in the following chart:
The Vanadium segment also experienced a revenue decline, with a 7% decrease to $153.8 million compared to Q1 2024. This was primarily due to lower volumes of ferrovanadium and titanium alloys, though partially offset by increased sales prices in ferrovanadium and chrome metal. Adjusted EBITDA for this segment was 10% lower than in Q1 2024, though it benefited from the Section 45X production credit for domestic manufacturing of critical materials under the Inflation Reduction Act of 2022.
The Vanadium segment’s performance is illustrated in the following chart:
Strategic Initiatives
AMG highlighted several strategic developments in its Q1 2025 presentation. In April, the company approved a $15 million capital investment to establish an aluminothermic production facility for chrome metal in the United States, recognizing chrome metal’s designation as a Critical Material in the US.
The company’s SARBV "Supercenter" phase 1 project in Saudi Arabia is progressing through detailed engineering and received an Environmental Permit to Construct in April. Additionally, AMG repurchased a 40% ownership interest in Graphit Kropfmühl GmbH in March 2025.
In a significant move to expand its lithium operations, AMG Lithium BV signed an exclusive agreement with Grupo Lagoa in April 2025 to become the first producer of lithium concentrate in Portugal, pending government approvals.
The company’s growth strategy is summarized in the following slide:
AMG also emphasized its contribution to carbon emission reduction, with enabled CO2 emission reductions of 113.6 million metric tons in 2024. The company positions its critical materials and process technologies as essential for advancing a less carbon-intensive world.
The following chart illustrates AMG’s contribution to carbon emission reduction over time:
Forward-Looking Statements
Looking ahead, AMG expects its adjusted EBITDA to exceed $170 million in 2025. The company is targeting capital expenditures of $75 to $100 million for the year, noting that it is at the end of a period of significant capital intensity that positions it for strong profitability as market prices improve.
For the longer term, AMG provided a 5-year guidance of achieving an EBITDA of $500 million or more at normalized market prices, either within five years or earlier.
The company’s outlook is summarized in the following slide:
In the lithium market specifically, AMG noted that global New Electric Vehicle (NEV) sales have experienced 32% year-over-year growth, though Europe remains flat. The company estimates that by 2030, 30 to 40 new lithium projects will need to come online to fulfill demand, which is not supported by current prices.
The market prices for various critical materials showed mixed trends in Q1 2025, as illustrated in the following table:
AMG concluded its presentation by stating that "the fundamental positions of our businesses are sound, and AMG remains focused on disciplined, sustainable growth," emphasizing its commitment to navigating market volatility while pursuing strategic growth opportunities in critical materials for the energy transition.
Full presentation:
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