Brussels-based materials group Umicore is holding an investor day in London on Thursday, with CEO Bart Sap unveiling a strategic overhaul that marks a clear shift away from large-scale investment in battery materials.
The company plans to reduce total capital expenditure by 2.1 billion euros between 2025 and 2028, including a 1.4 billion euro reduction in battery-related spending. Capital will instead be redirected to more profitable segments such as recycling and automotive catalysts, as part of a push for tighter financial discipline and a “more balanced capital allocation”.
Lower revenues
Umicore’s 2024 revenues were lower than expected at 3.5 billion euros, down from 3.9 billion the previous year. Operating profit was also down 29 per cent year-on-year. Umicore blames falling metal prices. Lower-than-expected demand for electric vehicles and competition from cheaper lithium-based batteries also played a role.
As a result, Umicore initiated a global restructuring with 260 job losses. Its battery operations in Flanders have been closed and a planned battery plant in Canada has been halted. Nevertheless, Umicore will continue with selected investments, including 370 million euros for cathode material projects in Poland and South Korea and 500 million for its IONWAY joint venture.
Cash flow control
Sap underlined the group’s commitment to its circular business model, in particular the Hoboken precious metals refinery, which will continue to receive support to maintain its competitive edge and environmental performance.
Meanwhile, planned investments in battery recycling will be delayed as Umicore seeks to tighten cost and cash flow control.
For 2025, Umicore expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) to stabilise between 720 million and 780 million euros. The outlook does not take into account the potential impact of any US import tariffs.
In the medium term, Umicore now aims to achieve revenues of around 1.1 billion by 2028 – and an adjusted EBITDA of between 275 million and 325 million by 2028.
