Nickel Industries reported a reduced loss after tax of $41.2 million for 2025, underpinned by steady production and strategic progress on its ENC HPAL project and sustainability initiatives.
- 2025 loss after tax narrows to $41.2 million from $189.8 million in 2024
- Sales revenue of US$1.65 billion with stable nickel production volumes
- Sphere Corp joins as 10% strategic investor in ENC HPAL project
- Successful refinancing extends debt maturity and reduces interest costs
- Sustainability efforts include fleet electrification and a major solar power project
Financial Performance and Operational Resilience
Nickel Industries Limited has reported a significant improvement in its financial results for the year ended 31 December 2025, posting a loss after tax of US$41.2 million, a marked reduction from the US$189.8 million loss recorded in 2024. This improvement reflects disciplined capital management and operational consistency despite ongoing volatility in global nickel markets.
The Group generated sales revenue of US$1.65 billion, underpinned by production volumes that remained broadly consistent with the prior year. The company produced 133,469 tonnes of finished nickel metal across its nickel pig iron (NPI) and mixed hydroxide precipitate (MHP) operations, demonstrating operational resilience amid challenging pricing environments.
Strategic Progress on ENC HPAL Project and Partnerships
A key highlight for Nickel Industries in 2025 was the advancement of the Excelsior Nickel Cobalt (ENC) High Pressure Acid Leach (HPAL) project. Construction reached a stage enabling staged commissioning, although full commercial sales await the issuance of the industrial business licence (Izin Usaha Industri). Notably, Sphere Corp, a supplier to aerospace giant SpaceX, acquired a 10% equity stake in ENC, validating the project’s strategic importance and low-carbon credentials.
Subsequent to year-end, Nickel Industries revised its acquisition schedule with partner Shanghai Decent, increasing its ENC ownership from 44% to 46% with a reduced final payment of US$46 million, down from previously expected commitments exceeding US$250 million. This adjustment reduces future cash outflows and provides clarity on the company’s stake in this globally significant nickel operation.
Refinancing and Balance Sheet Strengthening
In September 2025, Nickel Industries successfully issued US$800 million in senior unsecured notes at a 9% coupon, maturing in 2030. This refinancing extended the company’s debt maturity profile, lowered its cost of debt, and eliminated near-term amortisation pressures. Concurrently, the company repaid US$150 million of amortising bank loans and retired its higher-cost 11.25% notes due in 2028, enhancing financial flexibility to support growth initiatives.
Sustainability and Environmental Initiatives
Nickel Industries continues to embed sustainability into its operations, with notable progress in fleet electrification and renewable energy integration. The electric truck fleet at the Hengjaya Mine expanded from 8 to 37 units in 2025, significantly reducing diesel consumption and emissions. Additionally, the company reached financial close on a 262MWp solar photovoltaic and 80MWh battery energy storage system project in the Indonesia Morowali Industrial Park, which will supply renewable power to the ENC HPAL facility, further lowering the carbon intensity of its nickel output.
The company also achieved Indonesia’s first approved in-pit tailings storage facility and secured a five-year environmental impact assessment (AMDAL) supporting increased ore sales and innovative environmental solutions. These initiatives underscore Nickel Industries’ commitment to responsible mining and operational efficiency.
Outlook and Market Positioning
Looking ahead, Nickel Industries is positioned to benefit from the anticipated commissioning of the ENC HPAL project in the first half of 2026, which will diversify its product mix and enhance production capacity. The recent increase in the Hengjaya Mine’s ore sales quota to 14.3 million wet metric tonnes for 2026 further supports ore security and cash flow generation.
Despite ongoing commodity price fluctuations and operational risks, the company’s strategic partnerships, refinancing success, and sustainability focus provide a solid foundation for navigating market challenges and capturing growth opportunities in the evolving nickel market, particularly in the electric vehicle supply chain.
Bottom Line?
Nickel Industries’ 2025 results reflect a company stabilising its operations and balance sheet while strategically advancing low-carbon nickel production, setting the stage for a pivotal 2026.
Questions in the middle?
- How will the ENC HPAL project commissioning impact Nickel Industries’ financial performance in 2026?
- What are the implications of Sphere Corp’s strategic investment for future offtake and project financing?
- How will evolving nickel market prices and regulatory changes affect the company’s operational margins and impairment risk?