Executives at MetalNRG (LON:MTLN) used the company’s full-year 2025 results call to emphasize record revenue, a sharp step-down in profitability tied to project execution losses in its former MPP business, and a set of governance and operating changes intended to prevent a repeat. Management also discussed its view of 2026 as a consolidation year, reiterated medium-term EBITDA ambitions, and addressed investor questions on hedging, renewables strategy, gas sourcing, ratings, and a potential IPO of its infrastructure unit.
2025 results: record revenue, but EBITDA hit by former MPP losses
Executive Chairman Evangelos Mytilineos said revenue rose 25% to a record level, “exceeding the $7 billion mark for the first time in our history,” while EBITDA and earnings per share were pressured by issues in the MPP division that the company had previously communicated. He said EBITDA fell to EUR 753 million, in line with updated guidance, and net profit was EUR 315 million.
Ioannou added that, excluding the project execution losses and the “partial monetization of the claim,” underlying EBITDA “would have come in at above the EUR 1 billion level.” In the Q&A, Bank of America’s Jason Fairclough referenced a “EUR 130 million gain on the potential legal settlement,” though management did not provide additional breakdown on that item beyond the CFO’s “partial monetization” remark.
Restructuring and tighter controls: ex-MPP folded into renewables platform
Mytilineos described MPP as a non-core legacy business that caused “disproportionate losses,” and said the company took “unpleasant measures and difficult changes.” He said the “MPP responsible for past issues no longer exists in its previous form,” and that the prior MPP has been absorbed into renewables, shifting focus toward “storage, DCs, and grids” alongside conventional renewables.
Ioannou detailed the control changes, including “enhanced accounting procedures to enable earlier identification of cost deviations,” more frequent project reforecasting, and a “more thorough and challenging management review.” She said the company conducted a “rigorous review” of live MPP projects and is at a completion rate “close to 90% on all of them,” with most expected to be delivered in 2026. She also said the company has “already booked all the cost overruns to date and delay LDs and provisions for losses that may come up in 2026,” calling the accounting approach “very, very prudent.”
CEO Christos Gavalas told Bank of America that the “whole chain of approving, implementing, monitoring, reporting and delivering all these projects is completely different through new people, processes and systems,” including a new approach within the capital allocation committee.
Business segment performance and operational updates
Ioannou provided segment-level results:
- Renewables and Energy Transition: revenue up about 26% to EUR 2.3 billion; EBITDA EUR 86 million, with the decline attributed to the ex-MPP execution losses. She said asset rotation sales reached a record 1.5 GW.
- Integrated Utility: revenue up 18% to EUR 3.9 billion; EBITDA EUR 357 million, “roughly in line with 2024,” reflecting performance in generation and natural gas as well as electricity supply market share gains.
- Metals: turnover EUR 907 million (about 13% of group turnover), roughly in line with 2024; EBITDA EUR 225 million, down more than 20% due to “CO2 volatility and higher energy costs.”
- Infrastructure and Concessions: turnover EUR 567 million, more than double 2024; EBITDA doubled to EUR 100 million.
On operations, Mytilineos said Protergia reached a 21% market share, progressing toward a 30% target. He also highlighted completion of a Chile deal for solar and battery energy storage systems with 588 MW installed capacity and 1.6 GWh of energy storage capacity, pointing to increased capability in “hybrid solar plus BESS projects.”
Gavalas said asset rotation sales in Australia and Spain are expected to follow Chile and “be sold this year,” potentially through hybrid solar-plus-battery structures. He also said the company recently entered a joint venture with PPC for a “very sizable project on batteries abroad.”
Balance sheet, dividends, and ratings targets
Mytilineos said liquidity remained strong and that 2026 would be the company’s “peak CapEx year.” He also said the company would pay a dividend of one euro per share for 2025, describing it as an increased payout “specifically and only for 2025” and an exception to its traditional 35% payout ratio, meant to compensate shareholders for an “exceptional and temporary setback.”
Ioannou said the group ended 2025 with EUR 3.7 billion of excess liquidity (cash and committed credit lines) and adjusted net debt of EUR 2.1 billion, excluding non-recourse debt. Net leverage rose to 3.1x due to lower EBITDA, but she said management anticipates “a very meaningful improvement” by end-2026. She described the maturity profile as comfortable until 2029, excluding a EUR 500 million refinancing in Q4 2026, and said the company has “a lot of options” to address it.
Asked about credit ratings, Gavalas said the company still aims for investment-grade and expects that “by the end of that year, 2026,” Metlen will be at a level to be eligible. He said cash conversion, deleveraging, and financial discipline are priorities in 2026.
Outlook: 2026 consolidation amid geopolitical uncertainty, plus gas and hedging comments
Mytilineos said 2026 is expected to be a year of “consolidation,” returning the company to its planned growth trajectory and keeping it on track for medium-term targets. He reiterated the roadmap presented at the prior capital markets day targeting approximately EUR 1.9–2.1 billion in EBITDA in the “medium term,” which he defined as 2028 to 2030. Management said additional 2026 outlook detail will be provided at the AGM in May.
Executives discussed implications of Middle East conflict dynamics for the business, with Mytilineos describing the company model as resilient due to the coexistence of energy and metals and a “prudent hedging policy.” On aluminum, he said prices were about $800 per ton above the 15-year average and premiums had surged as the physical market tightened, adding that Metlen is “well positioned to capture very high margins going forward.”
In response to a hedging question, Mytilineos said the company’s policy focuses on securing margins when possible. “If I can secure 30% or 40% margin for my shareholders, I will not risk the market,” he said, pointing to the company’s prior hedging ahead of a major aluminum price decline in 2007–2008. He also noted LME exposure can be hedged, while premium cannot.
On gas sourcing, Mytilineos said Gazprom volumes from a legacy contract represent about 30%–35% of total gas procurement and flow through TurkStream, with an EU decision expected to end that supply at the end of 2027. He said the Shell contract is the first medium-term five-year contract and that more contracts are expected, with about 20% left for spot purchasing. He added that gas needed for aluminum and alumina production has already been priced for 2026 through 2028.
Management also addressed capital allocation and industrial initiatives. Mytilineos said initial quantities of gallium have been produced and asked investors to “stay tuned for the first good surprise of the year.” He said circular metals’ pilot plant was commissioned, with recovery rates above 95%, and that first production is expected before year-end, with a larger plant to follow once the pilot runs smoothly.
Closing the call, Mytilineos characterized 2025 as a “unique experience” that prompted meaningful changes, and said 2026 would mark a return to the growth trajectory described at the company’s April 2025 capital markets day.
About MetalNRG (LON:MTLN)
MetalNRG PLC (LON:MTLN) is a UK-listed exploration and development company concentrating on critical battery and precious metals. The firm’s project portfolio targets nickel, copper, cobalt and platinum group elements (PGEs), which are essential for electric vehicle batteries, renewable energy systems and wider decarbonisation efforts. MetalNRG employs modern exploration techniques, including geophysical surveying, geochemical sampling and drilling campaigns, to identify and advance high-potential mineral prospects.
The company’s primary licences are situated in Scandinavia, where robust mining regulations, established infrastructure and proximity to European battery and automotive supply chains offer strategic advantages.
