Vale (VALE.US) Reports 6% Q2 Profit Growth Despite Sluggish Iron Ore Prices, Announces $14 Billion Share Buyback
It has been learned that Vale (VALE.US), the world's leading iron ore producer, announced its 2025 second-quarter earnings better than expected. Although sales volumes declined and iron ore prices softened, increased production helped boost profits. The financial report shows that Vale's Q2 revenue was $8.804 billion, down 11% year-over-year; net income attributable to shareholders was $2.117 billion, up 6%. Pro forma EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $3.424 billion, down 14%, but better than the market's expectation of $3.31 billion; adjusted EBITDA was $3.386 billion, down 15%.
Vale attributed its good performance mainly to the strong showing of copper and nickel business, an area where Vale has been focusing on improving in recent years, as well as reduced costs for transporting iron ore to China, which helped mitigate the impact of sluggish commodity prices.
Vale's profit is largely dependent on its iron ore business, which accounts for about 80% of its revenue. The company produced 83.6 million metric tons of iron ore in the second quarter, exceeding expectations, despite a decline in sales volumes and actual prices due to low steel profitability rates. As steel mills' profits gradually narrowed, Vale shifted towards more flexible sales strategies, expanding its product lineup and increasing the proportion of higher-grade ore.
Additionally, Vale's board of directors approved a share buyback of $14 billion, expected to be paid out in September.