Vale third-quarter profit tumbles, iron ore output misses forecasts
VALE•Vale’s third-quarter adjusted EBITDA fell 20% to $3.51 billion, while iron ore output declined 6% to 88.4 million metric tons, below forecasts. Revenue rose 2% to $10.6 billion, topping estimates.
1. Profit and revenue
Vale reported a 20% decline in third-quarter adjusted EBITDA to $3.51 billion, in line with estimates. Net revenue rose 2% to $10.6 billion, above the $10.4 billion consensus, helped by its copper and nickel businesses; sales of steelmaking material held steady as inventories were drawn down.
2. Iron ore production
Iron ore output fell 6% to 88.4 million metric tons, below the 90.1 million-ton consensus, as lower run-of-mine supply from the Serra Norte complex weighed on production. Vale said it was confident it would reach the lower end of its 2026 iron ore production guidance of 335 million to 345 million tons, and expects copper and nickel output near the upper ends of their projected ranges.
3. Prices and costs
The average realized price for iron ore fines declined 10% to $85 per ton. Total costs for iron ore fines rose 23%, driven largely by higher diesel and bunker fuel and freight costs. Vale said it resumed operations at its Fabrica mine in September after a water overflow halted it at the beginning of the year.
