Glencore shares stumbled on Wednesday after the mining giant reported a 14% drop in EBITDA in the first half of 2025 as weaker coal prices weighed on profitability.
The group’s industrial activities segment, which includes mining, smelting and refining, saw adjusted EBITDA fall to $3.7bn in H1 2025 from $4.5bn in the same period a year ago. Adjusted EBIT sank 37% to $1.8bn.
The coal business was a real drag on performance in the first half with impairments of coal assets leading to Glencore recording an overall $655m loss for the period.
Although coal was the main driver in falling profits, there was also weakness in the copper business, with lower production and grades hitting profits.
“The headlines of Glencore’s half year report do not read particularly well,” said Adam Vettese, market analyst for eToro.
“Earnings were clearly pressured, with a 14% drop in adjusted EBITDA and a net loss of $655 million, driven by weaker coal and copper prices and significant impairments, most notably at Cerrejón. Margins are down and copper output underwhelmed, with risks from volatile markets and operational delays still front and centre.”
Vettese continued to explain that while the first half period was one to forget for Glencore, there were some positive takeaways that could help boost future performance.
“Despite these headwinds, there is some silver lining. Revenue held flat year on year, highlighting the strength of its trading arm and the resilience of its diversified portfolio. The sale of Viterra and the resulting Bunge stake not only bolstered Glencore’s balance sheet, reflected in a healthy boost in liquidity but also added optionality going forward,” Vettese said.
“Importantly, management is focusing on self-help, a $1 billion cost saving program is underway all the while shareholder returns remain generous, with $3.2 billion committed for the year.”