Vale's Q2 2025 Profits Rise 6% Despite Revenue Drop

Vale S.A., the global iron ore giant, reported better-than-expected financial results for the second quarter of 2025. Despite a decline in sales volume and weak iron ore prices, a surge in production helped boost profits. The company's revenue for the quarter was $88.04 billion, down 11% year-over-year, while net income rose 6% to $21.17 billion. The company's Pro Forma EBITDA was $34.24 billion, down 14% year-over-year but better than the market's expectation of $33.1 billion. Adjusted EBITDA was $33.86 billion, down 15% year-over-year.

Vale attributed its strong performance to robust earnings from its copper and nickel businesses, areas it has been working to turn around in recent years, as well as reduced costs for transporting iron ore to China, which helped mitigate the impact of weak commodity prices. Vale's profitability is heavily reliant on its iron ore business, which accounts for approximately 80% of its revenue. In the second quarter, the company produced 83.6 million metric tons of iron ore, exceeding expectations, despite a decline in sales volume and actual prices due to weak steel margins. As steel mill profits narrowed, Vale shifted to more flexible sales strategies, expanding its product mix and increasing the proportion of mid-grade ore.

In addition to its strong financial performance, Vale's board of directors approved a $14 billion dividend to shareholders, expected to be paid in September. This dividend reflects the company's confidence in its financial health and its commitment to returning value to shareholders. The company's ability to generate strong earnings despite challenging market conditions underscores its operational efficiency and strategic agility. Vale's focus on cost management and diversification of its product offerings has positioned it well to navigate the volatility in commodity markets.