Industria
AMG's Portfolio Delivers Strong First Quarter 2025 Results
Amsterdam, 7 May 2025 (Regulated Information) --- AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reports first quarter 2025 revenue of $388 million, an 8% increase compared to the first quarter 2024 revenue of $358 million. AMG achieved an adjusted EBITDA of $58 million, an 88% increase compared to the first quarter of 2024 adjusted EBITDA of $31 million. AMG had positive cash from operating activities of $9 million during the first quarter of 2025, compared to the $15 million of cash used in operating activities during the first three months of last year. The AMG Technologies segment also had an extremely strong performance, with its highest order backlog in AMG's history of $416 million as of March 31, 2025.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “We are obviously pleased to have achieved such a strong first quarter, almost double that of the first quarter of 2024. We achieved an EBITDA of $58 million for the first three months of 2025, despite no upward correction in lithium or vanadium prices. This indicates the power of AMG's critical materials portfolio and demonstrates the significant upside potential should commodity prices normalize.
Looking forward, while the indirect effects of increased tariffs and trade barriers are difficult to assess, there are no material direct effects of the tariffs on AMG's businesses based on our present analysis. In the current volatile market, our businesses benefit from their production of materials which are critical to our customers, and to a large extent we operate within domestic value chains.
As we enter into a period of uncertainty, it should be noted that AMG is at the end of its heavy capital expansion phase. As an important signal of this next chapter of AMG's development, I am pleased to report that Bitterfeld has successfully produced lithium hydroxide at battery-grade specification and will be shipping the first commercial qualification batches to our customers soon.
Going forward we will be focused on small, highly accretive investments which preserve our growth options. The recently announced investments in US Chrome, Lagoa, and Graphite all demonstrate how we will continue to invest and support growth while maintaining the strength of our balance sheet.”
AMG Lithium B.V.
AMG Vanadium B.V.
AMG Technologies
Financial Highlights
Key Figures
Operational Review
AMG Lithium
AMG Lithium's revenue decreased 23% compared to the first quarter of 2024. This variance was mainly due to the 27% decline in lithium market prices versus the first quarter of 2024, as well as a 22% decrease in lithium concentrate sales volumes, partially offset by increased tantalum sales prices. The decrease in lithium concentrate volumes was partly driven by the high shipments at the end of last year, and partly driven by AMG taking advantage of the low prevailing prices to perform significant testing on its new lithium concentrate production lines in order to increase reliability and performance.
SG&A expenses of $12 million during the first quarter of 2025 were 15% higher than in the same period of 2024, mainly driven by the increase in personnel costs related to the commissioning and ramp-up of the lithium hydroxide refinery.
The first quarter 2025 adjusted EBITDA declined 6% compared to the first quarter of 2024.
During the first quarter of 2025, a total of 12,167 dry metric tons (“dmt”) of lithium concentrates were sold, 22% less than the 15,652 dmt in the first quarter of 2024. Volumes were negatively impacted by shipment schedules and a partial shutdown as noted above. The average realized sales price was $640/dmt CIF China for the quarter, and the average cost per ton was $572/dmt CIF China. This higher cost per ton was driven by the lower lithium concentrate and tantalum concentrate production in the current period.
AMG Vanadium
AMG Vanadium's revenue for the first quarter of 2025 decreased by 7%, to $154 million, due primarily to lower volumes of ferrovanadium and titanium alloys. These lower volumes were partially offset by increased sales prices in ferrovanadium and chrome metal.
Adjusted gross profit of $19 million in the first quarter of 2025 was 2% lower compared to the same period in 2024, largely due to the lower revenue for the segment in the current quarter. This was partially offset by the benefit from Section 45X, a production credit for domestic manufacturing of critical materials for which AMG Vanadium qualified based on the Inflation Reduction Act of 2022.
SG&A expenses of $15 million in the first quarter of 2025 were 10% higher than in the first quarter of 2024, largely driven by higher professional fees in the current period.
The first quarter of 2025 adjusted EBITDA of $13 million was 10% lower than the same period in 2024. This decrease was primarily due to the lower sales volumes noted above, offset by higher profitability in chrome and the ongoing benefit of Section 45X.
AMG Technologies
AMG Technologies' first quarter 2025 revenue increased by $51 million, or 34%, compared to the same period in 2024. This improvement was driven largely by steadily increasing sales prices of antimony in the current quarter.
SG&A expenses in the first quarter of 2025 of $23 million were 13% higher than in the first quarter of 2024, due to additional personnel at AMG LIVA and AMG Engineering corresponding to the increased business development within those units.
AMG Technologies' adjusted EBITDA was $39 million during the first quarter, more than triple the adjusted EBITDA in the first quarter of 2024. The increase was primarily due to higher profitability in AMG Antimony.
AMG Engineering signed $107 million in new orders during the first quarter of 2025, representing a 1.71x book to bill ratio. The 2025 order intake was driven by strong orders of turbine blade coating furnaces. AMG Engineering achieved an all-time high order backlog of $416 million as of March 31, 2025.
AMG Graphite reacquired a 40% interest in the business from Alterna Capital Partners. The acquisition price is payable in AMG shares. The timing of the repayment in shares is at AMG's option and can be executed at any point over a three year term from the date of closing.
AMG Silicon, after temporarily halting operations during high electricity prices in weak markets, is now running one of the four furnaces as of the second quarter of 2025. Due to these interruptions in AMG Silicon's operations, the profitability of the business is immaterial and excluded from adjusted EBITDA during this period of abnormal operations.
Financial Review
Tax
AMG recorded an income tax expense of $1 million in the first quarter of 2025, compared to $3 million in the same period in 2024. The $1 million tax expense in the first quarter of 2025 was primarily driven by $6 million of Brazilian deferred tax expense related to the appreciation of the Brazilian Real offset by $5 million of unabsorbed losses.
Cash tax payments totaled $4 million in the first quarter of 2025, compared to $8 million in the first quarter or 2024, primarily due to lower profitability in AMG's Brazilian operations.
Exceptional Items - Adjusted Gross Profit
AMG's first quarter 2025 and 2024 adjusted gross profit includes exceptional items, which are not included in the calculation of adjusted EBITDA as shown in the summary below:
Exceptional items included in adjusted gross profit
AMG had $5 million non-cash expense during the first quarter of 2025 mainly driven by AMG Lithium due to the decline in lithium prices, which has been excluded from the calculation of adjusted EBITDA.
SG&A
AMG's first quarter 2025 SG&A expenses of $50 million were 12% higher than in the first quarter of 2024. This variance was primarily driven by the increase in headcount in our Lithium, Engineering, and LIVA businesses associated with our strategic expansion projects, as well as higher professional fees.
Liquidity
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2025, the Company had $286 million in unrestricted cash and cash equivalents and $200 million available on its revolving credit facility. As such, AMG had $486 million of total liquidity as of March 31, 2025.
Net Finance Costs
AMG's first quarter 2025 net finance cost was $11 million compared to $15 million in the first quarter of 2024. This variance was largely driven by non-cash, intercompany foreign exchange losses of $7 million in the prior period.
Outlook
Despite exceptionally low lithium and vanadium prices, we had a very strong start to 2025. The AMG Technologies segment performed particularly well. Based on that and considering uncertain economic and market conditions globally, we increase our adjusted EBITDA outlook from “$150 million, or more, in 2025” to “$170 million, or more, in 2025.”
Regarding AMG's 5-year guidance, these five key pillars, which represent significant investments, are now complete:
These projects deliver the volume growth which underpin the long-term guidance of an EBITDA of $500 million or more in 5 years or earlier at normalized market prices.
Profit (loss) for the period to adjusted EBITDA reconciliation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG's mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG's products include highly engineered systems to reduce CO in aerospace engines, as well as critical materials addressing CO reduction in a variety of other end use markets.
AMG's Lithium segment spans the lithium value chain, reducing the CO footprint of both suppliers and customers. AMG's Vanadium segment is the world's market leader in recycling vanadium from oil refining residues, spanning the Company's vanadium, titanium, and chrome businesses. AMG's Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company's fast-growing LIVA batteries, NewMOX SAS formed to service the nuclear fuel market, and spans AMG's mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, and Sri Lanka, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact:
AMG Critical Materials N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
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