Nickel Asia Corporation

For the first half of 2026, consolidated revenue was PHP 17.02 billion, up 44% from PHP 11.78 billion in the first half of 2025. Consolidated EBITDA was PHP 8.68 billion, up 67% from PHP 5.20 billion, and attributable net income was PHP 4.06 billion, up 93% from PHP 2.10 billion. Gross profit margin improved to 65% from 53%, EBITDA margin rose to 51% from 44%, and net income margin was 33% versus 26% a year ago. Mining sales volume increased 10% to 8.64 million wet metric tons; ore export volume rose 21% to 4.76 million wet metric tons; limonite HPAL deliveries were essentially flat at 3.88 million wet metric tons. Ore revenues increased to PHP 15.40 billion, up 45%, including ore export revenue of PHP 12.45 billion and limonite HPAL revenue of PHP 2.95 billion. Total assets were PHP 74.1 billion, cash and cash equivalents were PHP 15.1 billion, and total liabilities were PHP 24.0 billion. Management did not provide formal next-quarter or full-year revenue/EPS guidance, but said the 20 million ton production guidance is still achievable, third quarter should be even better seasonally, and windfall profit tax effects will be reflected in full-year 2026 results.

The CEO framed the quarter as proof that the company’s strategy is working, highlighting strong mining cash generation and the ramp-up of the renewable energy platform, now rebranded as NAC Energy. He said the company is using that cash flow to fund dividends, offshore copper and nickel opportunities, and continued investment in power, while stressing that the business can do all three. His tone was optimistic and expansionary, with repeated references to growth, cash generation, and a diversified natural resources platform.

The CFO did not speak extensively in the prepared remarks, but the financial presentation covered the key drivers he would typically emphasize: revenue up 44% to PHP 17.02 billion, EBITDA up 67% to PHP 8.68 billion, and net income up 93% to PHP 4.06 billion. He also highlighted margin expansion, with gross margin at 65%, EBITDA margin at 51%, and net income margin at 33%, driven by higher realized ore prices, higher volumes, and a favorable peso at PHP 60.85 to USD 1 versus PHP 56.47 a year ago. On the balance sheet, cash fell 14% to PHP 15.1 billion as capital expenditures continued, while debt ratio stayed at 0.32x and net debt to equity moved to 0.1x from 0.05x.

Analysts focused heavily on Indonesia’s nickel ore quota policy, possible changes to ore pricing in 3Q, dividend plans, capital allocation, the new mining fiscal regime, fuel costs, and HPAL losses. Management said Indonesia’s quotas remain tight overall, supporting a narrower global oversupply, and said Nickel Asia’s ore quality and branding mean it has not seen sales disruption even when quotas are relaxed. On dividends, management reiterated a 30% regular payout policy and said special dividends remain likely based on history, but capital is also being reserved for offshore copper, nickel, and power investments. They also said the new mining fiscal regime is currently reflected only through royalties outside mineral reservations for three mines, with an estimated after-tax impact of about PHP 63 million and about a 2% impact on mining bottom line; windfall profit tax will show up in full-year 2026 results.