By Brazil Stock Guide – Vale (VALE3; VALE) reported a net loss attributable to shareholders of US$ 3.844 billion in 4Q25, compared with a loss of US$ 694 million in 4Q24, reflecting significant non-cash charges despite stronger operating performance. The headline result contrasts with solid growth in revenue and EBITDA, highlighting the impact of impairments and tax effects in the quarter.
On a proforma basis — which excludes non-recurring items and impairment effects — net income reached US$ 1.464 billion, up 68% year over year, supported by higher EBITDA and more favorable financial results.
Net operating revenue totaled US$ 11.06 billion in 4Q25, up 9% from US$ 10.12 billion in 4Q24, driven by stronger volumes of iron ore, copper and nickel, as well as firmer realized copper prices.
Adjusted EBITDA reached US$ 4.588 billion, up 21% year over year, while proforma EBITDA totaled US$ 4.834 billion, increasing 17%, underscoring resilience in core operations despite volatility in commodity markets.
The divergence between operating strength and bottom-line loss was mainly explained by a US$ 3.5 billion impairment in Canadian nickel assets, reflecting lower long-term nickel price assumptions, as well as higher income tax expenses and Samarco-related provisions.
Iron Ore: Stable EBITDA, Strong Volumes
Vale’s Iron Ore Solutions segment generated US$ 3.967 billion in adjusted EBITDA in 4Q25, slightly down 1% year over year, despite a 5% increase in total iron ore sales volumes.
Total iron ore sales reached 84.9 million tonnes, up 5% from 4Q24, with fines shipments rising 5%. Pellet sales, however, fell 10%, reflecting market adjustments.
The average realized iron ore fines price was US$ 95.4 per tonne, up 3% year over year. Pellet realized prices declined 8% to US$ 131.4 per tonne, weighing on pellet margins.
EBITDA from fines increased 8% to US$ 3.415 billion, supported by higher volumes and freight efficiencies. Pellet EBITDA declined 32% to US$ 527 million, pressured by weaker premiums and lower volumes.
C1 cash cost (excluding third-party purchases) stood at US$ 21.3 per tonne, up 13% year over year in the quarter due to FX effects and maintenance concentration, though remaining within guidance.
All-in cost for fines and pellets reached US$ 54.3 per tonne, up 10% year over year, reflecting weaker premiums and higher operating costs.
Vale Base Metals: Copper Leads the Rebound
The standout performer was Vale Base Metals, where adjusted EBITDA surged 157% year over year to US$ 1.393 billion in 4Q25.
Copper EBITDA more than doubled, rising 101% to US$ 1.059 billion, supported by stronger realized prices — US$ 11,003 per tonne, up 20% year over year — as well as positive provisional pricing adjustments.
Copper sales volumes increased 9% year over year to 81 thousand tonnes, while revenue from the segment jumped 62% to US$ 1.565 billion.
Nickel EBITDA surged 551% year over year to US$ 358 million, despite softer LME nickel prices, helped by higher by-product credits and operational improvements.
The strong copper and nickel performance was central to the 17% expansion in consolidated proforma EBITDA, partially offsetting iron ore margin pressures.
Cash Flow and Balance Sheet
Recurring free cash flow reached US$ 1.688 billion in 4Q25, more than doubling year over year, benefiting from higher EBITDA and lower financial expenses.
Total capex reached US$ 2.03 billion in the quarter, up 15% year over year, with increased maintenance investments in iron ore and base metals.
Expanded net debt declined sequentially to US$ 15.6 billion, down US$ 1.1 billion quarter over quarter, supported by strong free cash flow generation.
Gross debt and leases totaled US$ 18.8 billion, while liquidity improved meaningfully year over year