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Highlights 

  • GLEN reported H1FY25 Adjusted EBITDA of GBP 5.4 billion, down 14% YoY, impacted by weaker coal prices and lower copper output.
  • Net debt of GLEN stood at GBP 14.5 billion, with financial flexibility supported by GBP 12.6 billion in liquidity.
  • The company expects a second-half uplift in copper volumes and GBP 1 billion in cost savings by end-2026.

Glencore plc (LSE:GLEN), a diversified natural resources group with operations across mining, energy, and commodity trading, released its financial results for the half-year ended June 30, 2025. The results reflect weaker commodity pricing and operational challenges in copper, partially offset by cost management efforts and continued contributions from the Marketing division.

In H1FY25, Glencore reported a 14% year-on-year decline in Adjusted EBITDA to GBP 5.4 billion. This performance was largely driven by a 17% drop in Industrial Adjusted EBITDA to GBP 3.8 billion, affected by a fall in coal prices and lower copper production volumes. The company’s copper assets experienced disruptions due to factors such as mine sequencing, water constraints, and cobalt stockpiling at sites including Collahuasi, Antamina, and Antapaccay. Despite these setbacks, Glencore reiterated its full-year production guidance, with a 40/60 production split expected between H1 and H2 for copper.

Marketing Adjusted EBIT came in at GBP 1.4 billion, an 8% YoY decline, yet remained a stable contributor amid uncertainty from geopolitical tensions and US tariff measures. Funds from Operations (FFO) dropped 22% YoY to GBP 3.2 billion, impacted by lower Industrial EBITDA and increased H1 interest costs related to recent bond issuances. Net income attributable to equity holders (pre-significant items) was GBP 0.6 billion, while the net loss, after exceptional items, stood at GBP 0.7 billion. Margins across Glencore’s metals operations were 24%, while steelmaking and energy coal posted 35% and 18% respectively.

Glencore concluded a strategic review of its industrial portfolio, identifying GBP 1 billion in recurring cost savings to be realised by end-2026, with more than half targeted for delivery by the end of 2025. Net debt increased by GBP 3.2 billion during the period, reaching GBP 14.5 billion, including GBP 1.0 billion in marketing lease liabilities. This rise was attributed to capital expenditures of GBP 3.2 billion, shareholder returns of GBP 1.8 billion, and working capital changes. However, Glencore reported a healthy liquidity position of GBP 12.6 billion, with bond maturities capped near GBP 3 billion annually. Its net debt-to-Adjusted EBITDA ratio stood at 1.08x but reduces to 1x after factoring in the GBP 900 million cash received in July from the Viterra sale.

In terms of capital allocation, Glencore announced a new share buyback program of up to GBP 1 billion and reaffirmed its base dividend payment of GBP 0.05 per share in September. The company views its Bunge shareholding (acquired through the Viterra transaction) as surplus capital to be monetised in the future. Looking ahead, Glencore expects stronger H2FY25 cash flow, aided by a rebound in copper output, partial reversal of working capital investment, and early benefits from its cost reduction programme. The company’s illustrative free cash flow generation at current spot prices remains near GBP 4 billion annually.

GLEN is trading 4.07% lower at GBP 288.80 per share as of 6 August 2025.