Glencore's Profit Falls, But Ambitions Remain Unshaken Amid Turbulent Markets

Glencore reported a 14% fall in adjusted EBITDA to $5.43 billion in its 2025 half-year results due to weaker coal prices, a 26% fall in copper output, and operational snags. The company's industrial business saw a 17% drop in EBITDA, while its marketing arm held up robustly with an 8% drop in EBIT. Glencore is targeting $1 billion in recurring cost savings by 2026 and expects copper output to rebound in the second half. The company is bullish on long-term commodity demand, particularly in critical metals like copper and cobalt.

Title: Glencore's 2025 Half-Year Results: A Mixed Bag of Challenges and Opportunities

Glencore PLC (GLEN.L) reported a 14% fall in adjusted EBITDA to $5.43 billion in its 2025 half-year results, weighed down by weaker coal prices, a 26% fall in copper output, and operational snags at several of its mines. The company's industrial business, which includes mining operations, saw a 17% drop in EBITDA, while its marketing arm, which handles commodity trading, held up more robustly with an 8% drop in EBIT [1].

The primary factors contributing to the decline in adjusted EBITDA were weaker coal prices and a sharp 26% fall in copper production. Operational challenges at key assets, such as Collahuasi, Antamina, Antapaccay, and KCC, also played a significant role. Despite these setbacks, Glencore remains optimistic about the future, targeting $1 billion in recurring cost savings by the end of 2026 and expecting copper output to rebound in the second half [2].

Glencore's Chief Executive Officer, Gary Nagle, commented on the company's strategy to optimize its business and position it for further value accretive growth. The company's review of its industrial portfolio identified opportunities for streamlining operations and enhancing technical expertise, aiming to deliver $1 billion in cost savings by the end of 2026 [3].

The company's marketing arm showed resilience, with an overall solid Adjusted EBIT contribution of $1.4 billion, down by 8% compared to the previous year. This performance is a testament to Glencore's ability to navigate macroeconomic and geopolitical uncertainty, including ongoing U.S. tariff tensions and volatility in the Middle East [2].

Glencore also highlighted its long-term bullishness on commodity demand, particularly in critical metals like copper and cobalt. The company believes that supply will struggle to keep pace with demand, positioning itself to benefit from this gap. It increased its long-term through-the-cycle Adjusted EBIT Marketing guidance range to $2.3 to $3.5 billion, with a new midpoint of $2.9 billion, representing a 16% increase from the previous range [3].

Despite the challenges faced in the first half of 2025, Glencore's decision to remain listed in London rather than shifting to a U.S. primary listing indicates a strategic focus on maintaining the familiarity and advantages of the London market for its shareholders. The company has earmarked $3.2 billion in total shareholder returns for 2025, including dividends and a $1 billion buyback program [2].

In conclusion, while Glencore faced significant challenges in the first half of 2025, the company's strategic focus on cost savings, operational improvements, and long-term commodity demand positions it for future growth. Investors should monitor the company's progress in the second half of the year and beyond.

References:
[1] https://www.reuters.com/markets/europe/glencores-interim-profit-slips-14-weaker-coal-prices-lower-copper-output-2025-08-06/
[2] https://www.marketscreener.com/news/glencore-s-profit-falls-but-ambitions-dont-ce7c5ed9da8efe25
[3] https://www.glencore.com/media-and-insights/news/2025-half-year-report