Strong aluminum margins and strategic progress drive H1 financial results despite supply disruptions and asset write-downs.
Emirates Global Aluminium, the world’s largest ‘premium aluminum’ producer, today announced resilient underlying financial performance in weaker markets during the first half of 2025 while delivering strategic progress on growth, alongside a full write-down of the value of the company’s Guinea subsidiary.
EGA delivered underlying Earnings Before Interest, Tax, Depreciation and Amortization (underlying EBITDA) of AED 3.82 billion ($1.04 billion), compared to AED 4.20 billion ($1.14 billion) in the first half of 2024. The decline was primarily due to Guinea supply disruption and the expropriation of Guinea Alumina Corporation (GAC), partially offset by higher realized aluminum prices.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “EGA is delivering on its bold growth agenda while transforming how aluminum is made and recycled. From advancing our plans for the first new primary aluminum plant in the United States in decades, to pioneering next-generation smelting technology and expanding our recycling footprint in both the UAE and the US, we are building the future of aluminum. These milestones reflect our commitment to innovation, sustainability, and global industrial leadership”
The average realized London Metal Exchange aluminum price was $2,538 per tonne, up from $2,303 per tonne in H1 2024, though prices fluctuated significantly due to global trade uncertainty and a weaker US dollar.
Regional premiums were also volatile. Japan’s MJP index peaked above $220 per tonne before falling to $90 by June. Europe’s MB duty-paid premium dropped from $360 to below $190. In the United States, aluminum import tariffs rose to 50 per cent, pushing the MW duty-paid premium from under $500 to over $1,500 per tonne by July.
Alumina prices rose early in the year due to supply disruptions in Australia, India, Jamaica, and Brazil, before easing as capacity expansions progressed in China, India, and Indonesia.
Pål Kildemo, Chief Financial Officer of Emirates Global Aluminium, said “The volatility in aluminum prices is expected to continue in the second half of 2025 impacted by evolving trade policies and trade tensions. Meanwhile, the global balance for aluminum is expected to be a marginal deficit in 2025. As for alumina markets, prices are expected to continue trending lower as new capacities continue to come online in Asia.”
EGA’s primary hot metal production remained steady at 1.34 million tonnes. Cast metal output totaled 1.41 million tonnes, with EGA Leichtmetall contributing 10 thousand tonnes and EGA Spectro Alloys 33 thousand tonnes.
EGA sold 1.37 million tonnes of cast metal to over 400 customers in more than 50 countries, up from 1.31 million tonnes in H1 2024. The share of value-added products – ‘premium aluminum’- rose to 84 per cent (H1 2024: 82 per cent). Higher billet, slab and purity sales offset softer demand for foundry amid weaker-than-expected performance in the automotive sector.
Sales of low-carbon aluminum brands also grew. EGA sold 52 thousand tonnes of CelestiAL solar aluminum (including 19 thousand tonnes of CelestiAL-R with recycled content), up from 44 thousand tonnes in H1 2024. During the period, EGA signed a supply agreement with Hyundai Mobis for up to 15 thousand tonnes of CelestiAL per year by 2026.
RevivAL recycled aluminum sales surged to 41 thousand tonnes, from just two thousand tonnes in H1 2024.
Al Taweelah alumina refinery produced 1.14 million tonnes of alumina in the first half of 2025, slightly down from 1.22 million tonnes in H1 2024, primarily due to the need to use alternative bauxite sourced from suppliers outside Guinea. To mitigate this, EGA implemented modifications to enhance the refinery’s efficiency in processing other bauxite types. While Australia remained the main source of bauxite during the period, EGA signed an agreement in June 2025 with the Ghana Integrated Aluminum Development Corporation to explore long-term off take arrangements and collaborate on rail and port infrastructure to support expanded production in the Republic of Ghana.
EGA continues to pull all available levers to grow margins and offset the negative impact of the situation in Guinea. The Najah transformation programme has played a significant role in recent years and has now been strengthened and extended to focus on sales, cost control, capital expenditure, and operating capital efficiency. These efforts, combined with a continued emphasis on maximizing production and increasing the share of value-added products, enabled EGA to maintain a competitive aluminum segment EBITDA margin of 22.8 per cent in the first half of 2025 (H1 2024: 27.5 per cent), continuing to lead global industry peers.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “In today’s volatile market environment, it is more important than ever to strike the right balance between operational discipline and strategic ambition. At EGA, we are focused on improving every aspect of our performance – from cost and capital efficiency to digital transformation – while continuing to invest in the growth opportunities that will define our future.”
Exports of bauxite from CBG and GAC remained suspended throughout H1 2025. After the period, the Government of Guinea wrongfully declared termination of the Basic Agreement and revoked GAC’s mining licence, actions that amount (amongst other unlawful actions taken by the Government of Guinea) to a de facto expropriation of EGA’s investment.
As a result of these actions, GAC released the majority of employees (providing compensation beyond local legal requirements), terminated contracts, and is seeking to assert its legal rights over equipment and infrastructure that GAC owns but which is currently under the physical control of the Government.
EGA recognized an impairment, and provisions charge of AED 2.5 billion ($687 million), representing a full write-down of GAC’s value, net of tax credits.
EGA’s underlying net profit before GAC adjustments was AED 1.63 billion ($445 million) compared to AED 1.84 billion ($500 million) in H1 2024. After the GAC impairment and accounting adjustments, EGA recorded a net loss of AED 890 million ($242 million).
Abdulnasser Bin Kalban continued: “We are deeply disappointed that the Guinean Government and entities under its control have chosen to violate fundamental legal principles to the detriment of investor confidence, governance, transparency, and long-term national interest. In addition to expropriating EGA’s investments in Guinea, this situation increased our bauxite procurement costs, reduced the efficiency of our alumina refinery as we made modifications to process different bauxite grades, and increased our need for third-party alumina. At the alumina refinery we made quicker progress than we initially believed possible for the first half and continue to reduce the impact of the supply disruption. We also made progress forging new global partnerships in bauxite supply.”
EGA advanced its strategic growth agenda in H1 2025 and announced the progression of plans to develop the first new primary aluminum production plant in the United States since 1980.
The plant in Oklahoma is expected to have a production capacity of between 600 thousand tonnes and 750 thousand tonnes of primary aluminum per year, nearly doubling the United States’ aluminum production capacity. Construction is expected to begin after a bankable feasibility study and by the end of 2026, with first hot metal by the end of the decade. The project has secured State-level incentives through the Oklahoma legislative process, and is progressing technical, environmental, and permitting studies to support the feasibility study.
EGA also completed construction of a pilot for its next-generation EX smelting technology in Al Taweelah and began production. EX delivers higher output with lower energy use and emissions, integrating Industry 4.0 capabilities and AI-driven analytics. The technology is being prepared for industrial-scale deployment in Oklahoma.
In recycling, EGA made significant progress. EGA Spectro Alloys completed a 55 thousand tonnes per year expansion in Minnesota, reaching first hot metal in early July. Total capacity now stands at 165 thousand tonnes, with full ramp-up expected in Q1 2026.
In the UAE, construction of the country’s largest aluminum recycling facility in Al Taweelah is ahead of schedule and budget. Construction completion is currently 72 per cent complete with first hot metal expected during the first quarter of 2026. The plant will have a production capacity of 170 thousand tonnes of secondary billet annually.
During H1 2025, EGA signed an MOU with RTX and Tawazun Council to establish EGA as a new producer of gallium and is currently in the preparation phase of launching a feasibility study for the potential facility in Al Taweelah.
Digitalization delivered AED 48 million ($13 million) in financial impact in H1 2025, with 22 new use cases developed. Since 2021, EGA’s Industry 4.0 program has generated AED 440 million ($120 million) in value through more than 80 use cases and 22 digital products. EGA also signed an agreement with the Ministry of Industry and Advanced Technology to support digital transformation of UAE industrial SMEs.
In early 2025, EGA was named an Industry 4.0 Global Lighthouse by the World Economic Forum—the first in the UAE and the first aluminum company globally to earn this recognition.
In support of the UAE’s Operation 300bn industrial growth strategy, EGA sold 153 thousand tonnes of cast metal to local customers (H1 2024: 149 thousand tonnes). The company also signed a joint development agreement with Sunstone for a 300 thousand tonnes per year anode plant in Abu Dhabi and a USD 500 million deal with ADNOC to localize 30 per cent of calcined petroleum coke needs over five years.
Cash flow from operations was AED 2.63 billion (USD 715 million), down from AED 3.34 billion (USD 909 million) in H1 2024. Net debt to underlying EBITDA improved to 1.4x (H1 2024: 1.6x). Total debt declined to AED 14.7 billion (USD 4.0 billion), from AED 16.5 billion (USD 4.5 billion). EGA made AED 1.4 billion (USD 373 million) in scheduled repayments during the period.
EGA’s Total Recordable Injury Frequency Rate during the first half of 2025 was at 1.71 per million hours worked. There was three Lost Time Injuries at EGA, and the employees fully recovered.