Ferrexpo plc (LSE: FXPO), a producer and exporter of premium iron ore pellets, announces its audited financial results for the year ended 31 December 2025.
Lucio Genovese, Executive Chair of Ferrexpo, commented:
“In my full statement below, I reflect on 2025 as a year during which Ferrexpo demonstrated an iron will and newfound levels of agility. As the war entered its fourth year, our people once again showed remarkable determination and readiness to keep going, allowing the business to adapt to the rapidly changing environment in which we operate.
During 2025, the Group faced increasing external challenges which hindered our ability to operate and generate the socio-economic contributions we provide for our people and Ukraine. The decision by tax authorities to continue to withhold VAT refunds during the year put pressure on our working capital availability and ultimately forced us to reduce our pellet line capacity from the 50% capacity we were achieving early in the year down to 25%.
Towards year end, numerous attacks on Ukrainian energy infrastructure, coupled with lack of availability of port and other infrastructure, placed even further challenges in front of us. The resulting rise in electricity prices and lack of export availability forced us to shut down operations completely for a period of time, requiring a part of the workforce to be placed on furlough.
We opened 2025 with a cash position of US$106 million and started the year on a strong operational footing. The first quarter of 2025 recorded our best quarterly production since the full-scale invasion of Ukraine, once again down to the resilience and fortitude of our brave workforce, an increase in production of high-grade concentrates – sold to customers in Asia – and stable production of Ferrexpo premium pellets.
However, the withheld VAT refunds and power-related disruptions had a significant impact on our financial performance, and we ended the year with cash of US$58 million. The total amount of VAT that was withheld in 2025 is US$61 million, which we have recorded as a receivable in our accounts. Effectively ‘adding this back’ to the yearend net cash position, we would have a liquidity position of US$119 million, which is higher than at the start of the year. The situation has been detrimental to our business, and has also, indirectly, caused harm to a broader set of stakeholders. Employees, communities and suppliers all received lower contributions from Ferrexpo in 2025.
There is no doubt that 2025 was another extremely difficult year for our people in Ukraine. I am grateful to every colleague for their resilience and commitment and to our shareholders for their continued support. Our business is very different today from what it was before the full-scale invasion, and I am hopeful that the agility and iron will we have developed will serve us well in the future. For now, we must remain vigilant, focused on keeping our people safe, protecting our assets, and continuing our efforts to recover the VAT refunds.
As we have announced, these operating conditions have continued in 2026 which have resulted in the Group needing additional capital to meet immediate and short-term operational requirements while operating at a reduced level for the next 18 months and to continue as a going concern. Therefore, we will be announcing the intention to launch an equity capital raise to raise gross proceeds of approximately US$100 million through a conditional placing and conditional subscription of new Ordinary Shares”
Financial highlights1
- Revenue decreased by 16% to US$787 million in 2025. This was mainly due to lower realised prices and the higher proportion of iron ore concentrate sales, which generated less revenue due to lower sales prices (2024: US$933 million).
- Underlying EBITDA decreased by 60% to US$28 million, mainly due to lower sales volumes and an increase in lower margin iron ore concentrate, which made up a larger part of the sales mix in 2025 (2024: US$69 million). Underlying EBITDA margin was 3% (2024: 7%).
- Net cash flow from operating activities was US$3 million, a significant decline driven by lower realised prices and withheld VAT refunds (2024: US$92 million).
- For 2025, the Group reported a loss of US$224 million, largely due to a non-cash impairment loss of US$154 million on the Group’s non-current operating assets (2024: US$50 million).
- During 2025, the Group significantly reduced its capital expenditure programme, with spending decreasing to US$49 million (2024: US$102 million).
- Despite the challenging environment, the Group is essentially debt free, with a net cash position of US$47 million as at 31 December 2025 (31 December 2024: US$101 million). With the exception of lease liabilities totalling US$11 million (31 December 2024: US$5 million), the Group did not have any outstanding interest-bearing loans and borrowings as of 31 December 2025.
Financial Summary
1. When assessing and discussing the Group’s reported financial performance, financial position and cash flows, management may make reference to Alternative Performance Measures (“APMs”) that are not defined or specified under International Financial Reporting Standards (“IFRS”) - see pages 72 to 73 for more information
Link to full PDF version of this release: click here.
For further information, please contact:
Ferrexpo:
Via Travistock
Tavistock:
Jos Simson / Gareth Tredway
ferrexpo@tavistock.co.uk
+44 (0)20 7920 3150 / +44 (0)7785 974 264
Notes to Editors:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and a listing in the equity shares commercial companies category on the London Stock Exchange (ticker FXPO). The Group produces premium grade iron ore products sold to the global steel industry and enabling steel makers to reduce carbon emissions and increase productivity. Ferrexpo's operations have been supplying the global steel industry for over 50 years with a customer base comprising of premium steel mills around the world. For further information, please visit www.ferrexpo.com.