Interim Report H1 2026
Afarak Group reported a challenging first half of 2026, with revenue falling 25.9% to EUR 57.1 million compared to EUR 77.1 million in H1 2025, alongside a significant decrease in EBITDA to EUR 1.6 million from EUR 6.9 million. This resulted in a net loss for the period of EUR -0.7 million, a reversal from the EUR 2.4 million profit in the prior year, impacted by a EUR 0.5 million fair value adjustment on foreign exchange contracts. Despite these financial headwinds, cash flow from operations improved to EUR 1.5 million, and interest-bearing debt decreased to EUR 4.4 million. The company anticipates an improvement in demand for standard grade low carbon ferro-chrome in the second half of 2026, though it expects continued pressure from a weak US dollar and cheap imports, while the specialty segment and South African chrome ore business are projected to remain stable.
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07:00 London, 09:00 Helsinki, 14 August 2026 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2026
| H1/26 | H1/25 | 2025 | ||
|---|---|---|---|---|
| Revenue | EUR million | 57.1 | 77.1 | 141.3 |
| EBITDA | EUR million | 1.6 | 6.9 | -0.2 |
| EBIT | EUR million | 0.5 | 5.9 | -2.6 |
| Earnings before taxes | EUR million | 0.1 | 3.4 | -7.5 |
| (Loss) / Profit for the period | EUR million | -0.7 | 2.4 | -8.9 |
| Earnings per share | EUR | 0.00 | 0.01 | -0.03 |
| EBITDA margin | 2.8% | 9.0% | -0.2 | |
| EBIT margin | 0.8% | 7.7% | -1.8 | |
| Earnings margin | 0.2% | 4.5% | -5.3 | |
| Personnel (end of period) | 625 | 613 | 626 |
FIRST HALF 2026 HIGHLIGHTS
The Group recorded an improved performance during H1 2026 compared with H2 2025;
Revenue decreased by 25.9% to EUR 57.1 (H1/2025: 77.1) million;
Processed material sold decreased by 25.9% to 11,372 (H1/2025: 15,354) tonnes;
Tonnage mined decreased by 12.8% to 130,256 (H1/2025: 149,410) tonnes;
The Group’s EBITDA was EUR 1.6 (H1/2025: 6.9) million and the EBITDA margin was 2.8% (H1/2025: 9%);
EBIT was EUR 0.5 (H1/2025: 5.9) million, with the EBIT margin at 0.8% (H1/2025: 7.7%);
Net financial items were negatively impacted by a fair value adjustment of EUR 0.5 million under IFRS 9 on outstanding foreign exchange forward contracts as at 30 June 2026. This resulted in a loss for the period totalled EUR -0.7 (H1/2025: 2.4) million;
Cash flow from operations stood at EUR 1.5 (H1/2025: 0.1) million;
The interest-bearing debt amounted to EUR 4.4 (30 June 2025: 4.9) (31 December 2025: 3.4) million;
Cash and cash equivalents at 30 June totalled EUR 4.9 (30 June 2025: 5.8) (31 December 2025: 7.3) million.
OUTLOOK FOR THE SECOND HALF OF 2026
The demand for standard grade low carbon ferro-chrome is expected to improve after the summer holiday, given the very low inventories of the industry at present. The weak US$ will continue to impact the profit margins, and cheap imports from Kazakhstan, Turkey, Brasil and India will continue to weigh on the market price development. The specialty segment may be seeing more substantial improvements in demand.
The South African chrome ore business is expected to remain stable. The concentrate production in the new Vlaakport mine wash plant is running smoothly. The demand for Cr Ore in China is continuously growing, and the prices have recently started to increase again after a decline during Q2 2026.
CEO Mr. Guy Konsbruck
The market conditions throughout 2026 have been very complicated. Whereas the prices of LC FeCr have improved on USD terms, there has been steep decline in consumption, especially in Europe, especially due to the automotive and the oil and gas sector. The disruptions caused by the Iran war and the Ukraine war impacted our customer base gravely.
As a consequence, we decided to reduce our LC FeCR production in order to match the output and the demand. We expect the demand to pick up as of September, especially if a resolution of the Iran conflict could be reached quickly. In the meantime, we are actively pursuing future business opportunities as an attempt of diversifying our activities and creating new revenue streams.
Helsinki, August 14, 2026
Afarak Group SE
Board of Directors
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
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