Boliden posts adjusted operating profit of SEK 4,894 million in third quarter
Key Facts
Boliden said on October 29 that revenue reached SEK 30,442 million in the third quarter of 2026, while operating profit was SEK 5,416 million. Operating profit excluding the revaluation of process inventory was SEK 4,894 million, compared with SEK 2,752 million in the same quarter a year earlier. Revenue also rose from SEK 21,971 million a year earlier. Net profit increased to SEK 3,888 million from SEK 2,294 million, while earnings per share rose to SEK 13.69 from SEK 8.07. Chief Executive Mikael Staffas said the announcement came amid the death of a colleague in an incident that may be the company's first work-related fatality in 18 years.
The company attributed the improvement in operating profit excluding the revaluation of process inventory mainly to better prices and terms, which added SEK 3,251 million to the year-on-year change in the measure. By contrast, the volume effect reduced profit by SEK 655 million, while costs cut profit by SEK 636 million. The report said higher metal prices supported results, while operating costs weighed on them, including higher oil prices and the resulting increases in chemical and transport costs. The average zinc price on the London Metal Exchange rose 35% year on year during the quarter. The average copper price also increased 44% compared with the third quarter of 2025.
Staffas described production at the mines and smelters as stable during the quarter, with performance varying across sites. The Somincor mine delivered strong production, while Kevitsa set a new record for ore processed. Garpenberg improved in line with plan, but a production slowdown there following unusual seismic activity in March hurt volumes. The Harjavalta smelter recorded a nickel feed record. The report said commodity markets were marked by geopolitical uncertainty and volatile energy prices, while supply constraints, trade uncertainty and demand linked to AI infrastructure and energy-transition technologies supported some metals markets.
In its full-year 2026 guidance, Boliden cut its copper-grade estimate at Aitik to 0.16% from 0.18%, but raised expected ore throughput to 42 million tonnes from 41 million. The company said the change reflected greater dilution by waste rock than planned. It kept expected total capital expenditure for the year at SEK 15.5 billion. But it raised its estimate for sustaining expenditure at the mines to SEK 7 billion from SEK 6.5 billion. This means the investment guidance adjustment was limited to sustaining expenditure at the mines, while the estimate for total expenditure remained unchanged.
Free cash flow was SEK 1,121 million in the quarter, compared with SEK 2,284 million a year earlier. The company said working capital increased as metal prices rose, although investments were lower than in the comparable period. The year-earlier comparison included insurance proceeds of SEK 350 million in the third quarter of 2025. Among metals, the average nickel price fell 9% from the previous quarter. The report linked the decline to renewed concerns about oversupply, amid uncertainty over a possible increase in Indonesia's nickel ore production quotas.
Boliden is scheduled to hold an extraordinary shareholders' meeting on November 23, 2026, to consider the board's authorization related to the Nexa deal. The company said completion of the deal is expected in the first quarter of 2027, subject to conditions including shareholder approval. It also set December 8, 2026, as the date for publishing its full 2027 guidance. The company estimated ore throughput at Garpenberg in 2027 at 2.3 million tonnes. The two upcoming dates place the shareholder decision on the deal and publication of the full annual guidance among the milestones set after the third-quarter results announcement.