Umicore unveils roadmap to 2028

Today at its Capital Markets Day, Umicore CEO Bart Sap and the Executive Leadership Team will present the key outcomes of the Battery Materials strategy review and Umicore’s roadmap to 2028.

Key take-aways

• Umicore’s circular business model more relevant than ever
• Mid-term plan designed to harness the Group’s strengths focusing on four key imperatives: Capital, Performance, People & Culture, Partnerships
• Capex reduction of €1.4 billion between 2025 – 2028 versus its previous plan: more balanced capital allocation within the Group and rigorous capital deployment
• Focus redirected to maximizing cash generation potential in foundation businesses¹ and value recovery in Battery Cathode Materials
• Battery Cathode Materials: robust standalone mid-term plan to recover value, while actively exploring partnership options
  
  

Mid-term targets:

• Adj. EBITDA of between €1.0 billion and €1.2 billion with an Adj. EBITDA margin > 23% and ROCE > 15% in 2028
• Cumulative free cash flow in the range of €1.0 to €1.2 billion²
• Limit total investments over the period 2025 – 2028 to €2.1 billion:
  • €1.6 billion Capex, of which less than €500 million in Battery Cathode Materials
    (€370 million³ to finish footprint in Nysa and Korea);
  • about €500 million⁴ equity contribution to IONWAY.
    
    

“Our circular business model is at the core of everything we do. Leveraging our deep knowledge in metals chemistry, metallurgy, materials science and metals management, our foundation businesses have grown into undisputed leaders in their respective fields with industry leading returns. This very business model also stands at the core of battery materials where over time additional requirements emerged,” said Bart Sap, CEO of Umicore. “Our plan focuses on reinforcing our leadership in the foundation businesses and further unlocking their strong cash generation potential, while setting up Battery Cathode Materials for value recovery. Building on our strengths, focusing on strict capital and performance management, forging partnerships and building on a strong culture, we are committed to delivering sustainable value to all our stakeholders.”

Focused progress across four key imperatives

• Capital: Strictly contained investments: more balanced capital allocation within the Group and rigorous capital deployment:
  • 50% Capex reduction in Battery Cathode Materials
  • Postponed battery recycling investment
  • Investment for the future in Precious Metals Refining plant in Hoboken, Belgium, allowing to deepen its competitive edge while strengthening its best-in-class environmental performance
• Performance: operational efficiencies across activities are expected to bring €100 million Adj. EBITDA savings in 2025. Moreover, Umicore continues to target to offset inflation through gross efficiencies of minimum €50 million to €75 million per year from 2026 to 2028.
• People & Culture: by fostering a value and efficiency mindset Umicore is taking decisive steps towards a performance culture.
• Partnerships: Umicore is actively exploring partnerships in its battery material activities
  
  

Maximizing cash generation potential in foundation businesses – unlocking between €2 and €2.2 billion cumulative free cash flows between 2025 and 2028⁵

• Building on its strong market position, Catalysis aims to further maximize its business value throughout the plan. It has the ambition to deliver revenues⁶ of around €1.8 billion, with an Adj. EBITDA margin of around 25% and ROCE > 35% in 2028, while generating more than €1.4 billion free cash flow over the period 2025 to 2028.
  
  
• Recycling aims to maximize cash generation from current assets while investing for the future. Value creation is anticipated to remain industry leading. It has the ambition to deliver revenues of around €800 million, an Adj. EBITDA of about 35% and ROCE > 40% in 2028, while generating around €400 million free cash flow over the period 2025 to 2028.
  
  
• Specialty Materials plans to seize attractive opportunities in high-tech end-markets while improving value creation in its Cobalt & Specialty Materials business. Umicore has the ambition to generate revenues of around €600 million, with an Adj. EBITDA margin > 20% and ROCE > 12.5% in 2028, while generating around €300 million free cash flow over the period 2025 to 2028.
  
  

Value recovery in Battery Cathode Materials

Umicore has outlined a robust standalone mid-term plan aiming to recover maximum value of its investments with strict cost and cash discipline.

Umicore decreases Capex by €800 million over the period 2025 to 2028 compared with the previous plan. It will put its assets to work leveraging its flexible footprint and maximizing plant utilization while applying strict cost management and rigorous capital deployment.

The remaining Capex of € 370 million⁷ will bring CAM capacity in Poland to 45 GWh and Korea to 40 GWh. These final investments are focused on delivering on customer and product commitments, while unlocking economies of scale. In its IONWAY JV with Volkswagen’s PowerCo, Umicore plans to contribute about € 500 million⁸ in equity based on committed investment waves over the same time horizon.

Umicore will leverage its strong customer contracts that include take-or-pay provisions, as well as additional protection mechanisms, while increasing focus on customer and platform diversification.

Executing this resized mid-term plan standalone, Umicore aims to:

• be Adj. EBITDA positive in 2026, and Adj. EBIT and free cash flow positive in 2027
• generate revenues of around €1.1 billion in 2028
• Adj. EBITDA in the range of € 275 million to € 325 million in 2028
• Adj. EBITDA margin of > 25% in 2028
• ROCE of about 9% by 2028
  
  

Actively exploring partnership options in Battery Cathode Materials

Umicore has significantly resized its mid-term plan for Battery Cathode Materials allowing standalone execution. At the same time, the company continues to seek ways to accelerate value recovery. To this end, Umicore is actively exploring partnership options.

Umicore will hold its Capital Markets Day for investors and analysts today at 12:30 PM UTC. The event will be streamed via live webcast, which can be found at our Capital Markets Day webpage.

Disclaimer
This press release contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions.​

Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected.

Readers are cautioned that forward-looking statements inherently include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. Umicore does not commit to review any of its forward-looking statements on new information or developments unless applicable by law.        

The global economic landscape continues to be disrupted by persistent geopolitical tensions leading to limited visibility on end market demand. Umicore is navigating this volatile environment by maintaining its focus on resilience, adaptability, and efficiency across the Group. Projections are based on the current market conditions and geopolitical landscape as of the date of publication. The provided outlook does not include any assumptions on the potential impact of the introduction of tariffs.

About Umicore

Umicore is the circular materials technology Group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy make a real difference. Its activities are organized in four business groups: Battery Materials Solutions, Catalysis, Recycling and Specialty Materials. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological developments and essential to everyday life.

Umicore generates the majority of its revenues and dedicates most of its R&D efforts to clean mobility materials and recycling. Umicore’s overriding goal of sustainable value creation is based on an ambition to develop, produce and recycle materials in a way that fulfils its mission: materials for a better life.

Umicore’s industrial and commercial operations as well as R&D activities are located across the world to best serve its global customer base with more than 11,500 employees. The Group generated revenues (excluding metal) of € 3.5 billion (turnover of € 14.9 billion) in 2024. 

For more information

Please visit Umicore Group’s website, newsroom and Investor Relations pages.
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¹ Catalysis, Recycling, Specialty Materials
² Free cash flow includes cash flow generated from operations (incl. changes in working capital) minus capital expenditures, capitalized development expenses and equity contributions into JVs
³ Of which €250 million included in the 2025 guidance provided at the time of the 2024 full year results publication
⁴ Of which €400 million included in the 2025 guidance provided at the time of the 2024 full year results publication
⁵ Precious metals - Gold, Silver, Rhodium, Platinum and Palladium - are forecasted at current rates (Jan. 2025), other metals are forecasted at average 2024 rates.
⁶ Revenues (excluding metals): All revenue elements - value of the following purchased metals: Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge, Li and Mn.
⁷ Of which €150 million included in the 2025 guidance provided at the time of the 2024 full-year results publication.
⁸ Of which €400 million included in the 2025 guidance provided at the time of the 2024 full-year results publication.