Belgium’s Umicore said on Tuesday it had lowered its net capital expenditure target for 2026 after expanding its battery materials production facilities to North America, with plans to build a new plant in Canada.
Umicore expects total net capital expenditure between 2022 and 2026 to reach 3.8 billion euros ($4.01 billion). The group had previously said it planned to carry out phased investments of around 5 billion euros between 2022-2026.
In a call with analysts, the company specified that the difference between the two figures was a result of taking into account secured governement grants and investments in its joint-venture with German automaker Volkswagen.
Analysts at brokerage Jefferies said that the difference between both figures does not necessarily mean a drop in overall gross capex spending.
Umicore also announced a new target for earnings before interest, taxes, depreciation and amortisation (EBITDA) margins, which they expect to be above 25% from 2026.
(Reporting by Victor Goury-Laffont, Editing by Louise Heavens)
