Maximizing cash generation potential in foundation businesses – unlocking between €2 and €2.2 billion cumulative free cash flows between 2025 and 20285
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Building on its strong market position, Catalysis aims to further maximize its business value throughout the plan. It has the ambition to deliver revenues6 of around €1.8 billion, with an Adj. EBITDA margin of around 25% and ROCE > 35% in 2028, while generating more than €1.4 billion free cash flow over the period 2025 to 2028.
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Recycling aims to maximize cash generation from current assets while investing for the future. Value creation is anticipated to remain industry leading. It has the ambition to deliver revenues of around €800 million, an Adj. EBITDA of about 35% and ROCE > 40% in 2028, while generating around €400 million free cash flow over the period 2025 to 2028.
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Specialty Materials plans to seize attractive opportunities in high-tech end-markets while improving value creation in its Cobalt & Specialty Materials business. Umicore has the ambition to generate revenues of around €600 million, with an Adj. EBITDA margin > 20% and ROCE > 12.5% in 2028, while generating around €300 million free cash flow over the period 2025 to 2028.
Value recovery in Battery Cathode Materials
Umicore has outlined a robust standalone mid-term plan aiming to recover maximum value of its investments with strict cost and cash discipline.
Umicore decreases Capex by €800 million over the period 2025 to 2028 compared with the previous plan. It will put its assets to work leveraging its flexible footprint and maximizing plant utilization while applying strict cost management and rigorous capital deployment.
The remaining Capex of € 370 million7 will bring CAM capacity in Poland to 45 GWh and Korea to 40 GWh. These final investments are focused on delivering on customer and product commitments, while unlocking economies of scale. In its IONWAY JV with Volkswagen’s PowerCo, Umicore plans to contribute about € 500 million8 in equity based on committed investment waves over the same time horizon.
Umicore will leverage its strong customer contracts that include take-or-pay provisions, as well as additional protection mechanisms, while increasing focus on customer and platform diversification.
Executing this resized mid-term plan standalone, Umicore aims to:
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be Adj. EBITDA positive in 2026, and Adj. EBIT and free cash flow positive in 2027
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generate revenues of around €1.1 billion in 2028
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Adj. EBITDA in the range of € 275 million to € 325 million in 2028
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Adj. EBITDA margin of > 25% in 2028
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ROCE of about 9% by 2028
Actively exploring partnership options in Battery Cathode Materials
Umicore has significantly resized its mid-term plan for Battery Cathode Materials allowing standalone execution. At the same time, the company continues to seek ways to accelerate value recovery. To this end, Umicore is actively exploring partnership options.
Umicore will hold its Capital Markets Day for investors and analysts today at 12:30 PM UTC. The event will be streamed via live webcast, which can be found at our Capital Markets Day webpage.
Disclaimer
This press release contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions.
Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected.
Readers are cautioned that forward-looking statements inherently include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. Umicore does not commit to review any of its forward-looking statements on new information or developments unless applicable by law.
The global economic landscape continues to be disrupted by persistent geopolitical tensions leading to limited visibility on end market demand. Umicore is navigating this volatile environment by maintaining its focus on resilience, adaptability, and efficiency across the Group. Projections are based on the current market conditions and geopolitical landscape as of the date of publication. The provided outlook does not include any assumptions on the potential impact of the introduction of tariffs.
About Umicore
Umicore is the circular materials technology Group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy make a real difference. Its activities are organized in four business groups: Battery Materials Solutions, Catalysis, Recycling and Specialty Materials. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological developments and essential to everyday life.
Umicore generates the majority of its revenues and dedicates most of its R&D efforts to clean mobility materials and recycling. Umicore’s overriding goal of sustainable value creation is based on an ambition to develop, produce and recycle materials in a way that fulfils its mission: materials for a better life.
Umicore’s industrial and commercial operations as well as R&D activities are located across the world to best serve its global customer base with more than 11,500 employees. The Group generated revenues (excluding metal) of € 3.5 billion (turnover of € 14.9 billion) in 2024.
For more information
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1 Catalysis, Recycling, Specialty Materials
2 Free cash flow includes cash flow generated from operations (incl. changes in working capital) minus capital expenditures, capitalized development expenses and equity contributions into JVs
3 Of which €250 million included in the 2025 guidance provided at the time of the 2024 full year results publication
4 Of which €400 million included in the 2025 guidance provided at the time of the 2024 full year results publication
5 Precious metals - Gold, Silver, Rhodium, Platinum and Palladium - are forecasted at current rates (Jan. 2025), other metals are forecasted at average 2024 rates.
6 Revenues (excluding metals): All revenue elements - value of the following purchased metals: Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge, Li and Mn.
7 Of which €150 million included in the 2025 guidance provided at the time of the 2024 full-year results publication.
8 Of which €400 million included in the 2025 guidance provided at the time of the 2024 full-year results publication.
