Highlights:

• Earnings improved sharply as stronger nickel pricing lifted operational performance.
• ENC advances towards commercial production with first nickel cathode output achieved.
• Sampala strategy expands HPAL exposure while maintaining capital flexibility.

Strong Half-Year Performance

Nickel Industries Limited (ASX: NIC) announced its half-year financial results on 26 August 2026, reporting stronger earnings, improved operational performance and continued expansion across its integrated nickel platform. The company delivered sales revenue of US$938.4 million during the period, compared with US$829.7 million in the previous corresponding period. Adjusted EBITDA increased to US$247.6 million from US$169.9 million, while profit after tax rose to US$74.3 million compared with US$25.5 million.

Nickel Pricing Supports Earnings Growth

Nickel Industries’ core processing operations delivered a significant improvement during the half year, supported by stronger nickel prices and resilient production performance. The RKEF segment delivered a stronger financial outcome, with adjusted EBITDA increasing to US$146.7 million from US$78.3 million in the previous corresponding period. The improvement was supported by a rise in the weighted average nickel contract price to US$13,784 per tonne, despite production being affected by planned maintenance activities.

The Hengjaya Mine continued to provide a stable foundation for the business, producing 8.1 million wet metric tonnes of nickel ore and generating adjusted EBITDA of US$73.4 million. Higher realised ore prices helped offset increased operating costs, while the company’s 2026 nickel ore sales quota was increased to 14.3 million wet metric tonnes, supporting future production capacity.

Downstream Expansion Gains Momentum

Nickel Industries continued strengthening its position in the downstream nickel sector through its HPAL expansion strategy. The company also advanced its Sampala Project strategy through an agreement to secure an indirect interest in the Chengsheng New Energy HPAL project. The transaction allows Nickel Industries to expand its downstream exposure through a share-based structure without requiring direct cash investment for the CNE interest.

The Sampala Project is expected to play a strategic role by supporting future HPAL developments, providing an integrated supply pathway between mining operations and downstream processing facilities.

Outlook: Can Expansion Drive Long-Term Growth?

Nickel Industries enters the next phase with stronger earnings, expanding production capability and a broader downstream portfolio. The successful ramp-up of ENC, progress across future HPAL projects and continued performance from existing operations will remain key drivers of future growth.

While the company has established a stronger position within the nickel supply chain, future performance will depend on project execution, production ramp-up, capital discipline and movements in global nickel market conditions.

Note- All data presented is based on information available at the time of writing.

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