Nickel Industries has delivered a substantial earnings recovery in the first half of 2026, with profit after tax surging to US$74.3 million from US$25.5 million in the prior corresponding period. The turnaround reflects both the recovery in nickel commodity prices and the emerging benefits of the company’s integrated production strategy across its Indonesian operations, which now encompasses nickel pig iron, matte, and cathode production.
The financial performance underscores improving operational leverage across the business. Revenue rose 13.1% to US$938.4 million while gross profit expanded 43% to US$164.3 million, indicating meaningful margin expansion as the company capitalised on higher nickel prices and delivered improved production efficiency. Operating profit reached US$164.3 million, a 66% increase year-on-year, while adjusted EBITDA climbed 46% to US$247.6 million. These metrics demonstrate the company is effectively converting commodity price recovery into underlying earnings growth, a critical factor for shareholder value creation in the cyclical nickel sector.
Production volumes and reserve additions confirm operational momentum. Nickel Industries produced 62,019 tonnes of finished nickel metal during the half, drawing from Hengjaya Mine’s 8.1 million tonnes of ore extraction. A particularly significant development was the uplift in the Hengjaya Reserve and Resource estimate, with the 2026 reserve base increased from 9.0 to 14.3 million tonnes. This 59% reserve upgrade materially extends the mine’s productive horizon and provides visibility for long-term cash generation. The commissioning of Eiser Nickel’s matte and high-pressure acid leaching facility, followed by the initiation of nickel cathode production, demonstrates progression toward higher-margin products and reduced exposure to volatile nickel pig iron pricing.
The balance sheet has weathered commodity volatility well. Total assets stood at US$4,073.8 million at June, whilst net assets reached US$2,528.5 million, a modest increase from December 2025. The successful refinancing of bank facilities during the period provides flexibility for future growth and represents a positive signal regarding debt headroom and covenant compliance. Net tangible asset backing was US$0.565 per share, broadly flat despite the significant earnings improvement.
The board’s decision to forego dividends despite the profit recovery suggests management confidence in reinvestment opportunities. The company also monetised its Sampala project interest through participation in the CNE HPAL initiative, unlocking value from a non-core asset while maintaining exposure to nickel sector upside. Investors should monitor the company’s capital allocation priorities, cash deployment strategies, and progress on debt reduction in coming periods. The trajectory of nickel prices and Indonesian production costs will remain critical drivers of earnings quality. This announcement is price sensitive and has been flagged as material by the ASX.
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About Nickel Industries Limited (ASX: NIC)
Nickel Industries Limited is an ASX-listed mining company that owns and operates a portfolio of nickel mining and downstream processing assets located primarily in Indonesia. The company produces nickel through high pressure acid leach (HPAL) technology and rotary kiln electric furnace (RKEF) projects, supplying nickel for stainless steel production and the electric vehicle supply chain.
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