Umicore realigns targets, prioritizes profitability; shares surge 11%

Published 27/03/2025, 11:10
© Reuters.

Investing.com -- Shares of Umicore (EBR:UMI) surged more than 11% on Thursday after the company unveiled its latest strategic update at its Capital Markets Day. 

Jefferies noted that Umicore’s revised targets, while adjusted downward from previous expectations, still demonstrated resilience amid a challenging macroeconomic environment. 

The company now expects adjusted EBITDA in 2026 to be in the range of €1.2 billion to €1.4 billion, down from a previous target of €1.5 billion.

Capital expenditures are projected at €3.8 billion for the 2022-2026 period, a reduction from the previously expected €5 billion, as Umicore focuses on balancing investment with cash flow generation.

The company outlined a roadmap prioritizing disciplined investment, with an emphasis on profitability and efficiency. 

It confirmed plans to scale back capacity expansion in battery materials while optimizing existing operations. 

The Catalysis and Recycling segments are expected to remain strong contributors to earnings, benefiting from high metal prices and process optimization.

Jefferies interpreted these adjustments as a sign of financial prudence rather than fundamental weakness. 

Analysts flagged Umicore’s ability to recalibrate its strategy while maintaining long-term growth ambitions, which helped reassure investors. D

espite intensified competition in the battery materials sector, Jefferies believes Umicore’s established position and technological expertise provide a solid foundation for future growth.

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