Vale Posts $3.508 Billion in Operating Profit, Down 20% Year Over Year
Key Facts
Vale reported Proforma EBITDA of $3.508 billion in the third quarter of 2026, down 20% from $4.399 billion a year earlier and 14% from the second quarter. The company released its results on October 29 after the market close and said lower realized iron ore prices and higher costs weighed on earnings. By contrast, higher realized prices for copper, nickel and by-products offset part of the impact. Net income attributable to Vale shareholders was $1.255 billion, down 53% from $2.685 billion in the third quarter of 2025. Net operating revenue rose 2% year over year to $10.599 billion, reflecting a divergence between revenue growth and declining profitability.
Vale distinguished between two earnings measures that should not be confused: adjusted EBITDA was $3.327 billion, down 24% year over year from $4.369 billion and 9% quarter over quarter from $3.676 billion. This figure differs from Proforma EBITDA of $3.508 billion, and the two measures also declined at different rates during the period. In base metals, adjusted EBITDA was $1.105 billion, up 61% from $687 million a year earlier. Adjusted copper EBITDA rose 66% to $1.021 billion, while Salobo mine’s contribution climbed 93% to $938 million. The results highlight copper’s improved contribution at a time when group earnings declined.
Iron ore remained the main source of pressure on the company’s results: the average realized price for fines sales fell to $85.1 per tonne, down 10% year over year and quarter over quarter. Vale attributed this to lower benchmark prices and temporary adjustments related to sales under CFR delivery and shipping terms. C1 cash costs also rose to $23.1 per tonne, up 12% year over year, while all-in costs climbed to $60.4 per tonne, up 21%. The company said the appreciation of the Brazilian real and diesel costs contributed to higher iron ore costs. Ore production fell 6% to 88.354 million tonnes, but sales increased 0.3% year over year despite lower production.
On the other hand, nickel production rose 6% to 49.7 thousand tonnes, and sales increased 16.1% year over year. Chief Executive Gustavo Pimenta said portfolio flexibility, shipping strategy and the hedging program helped protect margins and support cash flow generation, adding that operational initiatives in iron ore aim to improve performance before year-end. Recurring free cash flow was $1.373 billion, down 12% from $1.562 billion in the corresponding period, while free cash flow was $2.230 billion, down 9% year over year. At quarter-end, net expanded debt was $16.413 billion, down 1% from a year earlier and 2% from the previous quarter. The indicators combine declines in earnings and cash flows on one hand with lower debt and improved performance in some base metals activities on the other.
Vale reaffirmed its 2026 copper and nickel production guidance and said it was heading toward the upper half of its annual ranges: 360–380 thousand tonnes for copper and 185–200 thousand tonnes for nickel. It kept its iron ore production range at 335–345 million tonnes, expressing confidence in reaching the lower end. The Salobo coarse particle flotation project has also reached the implementation stage, and the company expects it to begin operating in the first half of 2028, with the capacity to add up to 30 thousand tonnes annually. The online results conference was scheduled for October 30, 2026, at 10 a.m. New York time. This follows the publication of results on October 29 after the market close.