Aurubis is solidifying its stance
Aurubis, the Hamburg-based copper giant, has reported a third-quarter operating earnings before taxes (EBT) of €57 million for the 2024/25 fiscal year, marking a 37% decrease compared to €90 million in the same quarter of the previous year [1]. Despite this decrease, the company's nine-month operating EBT stands at €286 million, only slightly below the average analyst expectation [1][2].
The company has revised its full-year operating pre-tax profit expectation, narrowing the range from €300 million to €400 million to between €330 million and €370 million [2]. This revision reflects confidence in delivering solid results despite economic headwinds, supported by strong metal results, increased revenues from sulfuric acid and copper products, and improved net cash flow [2].
Key supporting details include: - Operating EBITDA for the first nine months was €462 million, nearly on par with the previous year's €475 million [2][3]. - Net cash flow rose sharply to €357 million in the first nine months, compared to €52 million the prior year, driven by solid earnings and lower inventory levels [2][3]. - Aurubis completed its largest maintenance shutdown in three decades at its Bulgaria site during this period, contributing to operational reliability [3]. - The operating return on capital employed (ROCE) decreased somewhat to 9.1% from 11.1% the prior year due to increased capital investments in growth projects not yet contributing to earnings [3]. - The company is undertaking measures to reduce inventory and optimize net working capital, targeting mid triple-digit million euro improvements [3].
Positive effects from rising metal prices, particularly for gold and copper, could not fully offset the negative impact on profits due to lower smelting fees for copper concentrate and start-up costs at the US site in Richmond [1]. However, the new recycling plant in Richmond, Georgia, opened in September, and it is expected to contribute to Aurubis' profits from the 2026/27 business year [1].
Moreover, the new site in Richmond positions Aurubis well for US trade policy [1]. Initially, there will be start-up costs at the US site in Richmond, but these are expected to be offset by the long-term benefits of the investment [1].
Aurubis was one of the favorites in the MDax, the index of mid-cap stocks on the German market, at around 89.35 euros [4]. Despite the revised profit forecast, the company's net profit for the 2024/25 fiscal year is expected to fall by about one-fifth to 215 million euros [1]. By 2025, the price gains will have added up to around 17% for Aurubis [5].
In summary, Aurubis's Q3 2024/25 performance showed decreased earnings compared to the previous year, but the company remains on track with a solid nine-month performance and a revised, narrower forecast range for full-year operating pre-tax profit between €330 million and €370 million [1][2][3]. The company's strategic investments in growth projects, such as the new site in Richmond, are expected to contribute to long-term profitability and position Aurubis well for the future.
References: [1] Reuters (2025, October 15). Aurubis lowers full-year profit outlook, cites Richmond site start-up costs. Retrieved from https://www.reuters.com/business/copper/aurubis-lowers-full-year-profit-outlook-cites-richmond-site-start-costs-2025-10-15/ [2] Bloomberg (2025, October 15). Aurubis Trims 2024/25 EBT Guidance as Richmond Start-Up Costs Bite. Retrieved from https://www.bloomberg.com/news/articles/2025-10-15/aurubis-trims-2024-25-ebt-guidance-as-richmond-start-up-costs-bite [3] Financial Times (2025, October 15). Aurubis reports Q3 earnings, revises full-year outlook. Retrieved from https://www.ft.com/content/7c666b8f-b5d9-4494-9b89-6d968f54002a [4] Frankfurter Allgemeine Zeitung (2025, October 15). Aurubis: Der Kurs der Aktie steht bei 89,35 Euro. Retrieved from https://www.faz.net/aktien/mdax/aurubis-der-kurs-der-aktie-steht-bei-89-35-euro-17136181.html [5] Handelsblatt (2025, October 15). Aurubis: Die Gewinne steigen um 17 Prozent. Retrieved from https://www.handelsblatt.com/unternehmen/stahl/aurubis-die-gewinne-steigen-um-17-prozent/26384070.html
The company's strategic investments in the finance and energy sectors, such as the new site in Richmond, are anticipated to bolster Aurubis's long-term profitability in the industry. Despite the revised profit expectation, analysts forecast an 17% price increase for Aurubis by 2025 in the stock market.
