focus on efficiency, stronger returns and US growth

Copper producer and multi-metal recycler Aurubis plans to continue capitalising on megatrends such as electrification, artificial intelligence and the modernisation of energy infrastructure. At its annual capital market day held in London on Wednesday, the group unveiled a revised corporate strategy entitled “Performance 2030: Forging resilience. Leading in multi-metal”.

Aurubis aims to further strengthen its position as a leading recycler and supplier of copper and other metals, with greater emphasis on operational excellence, profitability and sustainable value creation. The company sees itself well positioned for focused growth in what it calls a “decade of metals”.

“We are focusing on expanding our strong market presence while continuing to set industry standards in processing complex raw materials, metal recovery, technological leadership, sustainability and operational excellence,” said CEO Toralf Haag. After a phase of investment-driven expansion, Aurubis is now shifting its focus to generating targeted returns from new assets and strengthening cash flow.

Recycling as a key growth driver

A central element of the strategy is the further expansion of the recycling business. The company’s management noted that Aurubis was one of only a handful of companies able to recover 20 different metals from a wide range of primary and secondary raw materials. Its integrated smelter network in Europe and the US provides “scale, flexibility and operational resilience”. The group intends to further optimise its multi-metal production by improving material flows, alleviating bottlenecks and maximising metal yields.

Particular emphasis is being placed on expanding recycling operations in the US. With its recently commissioned “Aurubis Richmond” site in Georgia, the company has built “the first greenfield smelter in the US in more than a century”, according to Mr Haag. Representing the group’s largest investment outside Europe at around €740m, the plant is designed to process about 180,000 tonnes of complex recycling materials such as printed circuit boards, copper cables and other metal-bearing products.

Aurubis expects its US subsidiary to contribute around €170m to annual Ebitda from the 2027/28 financial year. “Our timely entry into the US market and our unique set of capabilities coupled with a supportive funding environment are a strong foundation for further growth in one of the most attractive metal markets in the world,” said Mr Haag.

In Germany, the company is implementing its Complex Recycling Hamburg (CRH) project which is set to increase the amount of external recycling materials processed by Aurubis by around 30,000 tonnes per year. In Belgium, the new ASPA (Advanced Sludge Processing by Aurubis) and BOB (Bleed Treatment Olen Beerse) projects are aimed at improving the recovery of copper, nickel, lead, tin and precious metals. Aurubis has also invested in automated sampling and analysis systems at several sites in recent years to offer suppliers faster settlement and improved services.

Battery recycling investments on hold

Aurubis sees little potential for growth in battery recycling at the moment. The company announced in London that it will not make any further investments in this segment for the time being.

While the technical feasibility of recovering key valuable materials from black mass has been demonstrated in pilot and demonstration facilities, the European black mass market is still in an early stage of development, according to the company. Aurubis therefore intends to pursue an “asset-light” approach in cooperation with partners to minimise risk in this slow-growing market.

Steady earnings expected for 2025/26

In the longer term, completed and ongoing investment projects are expected to help raise the group’s return on capital employed (ROCE) in the operating business to 15 per cent, Aurubis said on Wednesday. For the current 2025/26 financial year, which began on 1 October, management is targeting an operating ROCE of 7-9 per cent.

In its outlook, Aurubis is forecasting operating Ebitda of €580-680m and operating earnings before tax (EBT) of €300-400m for the current financial year, roughly in line with the previous year’s result. In its most recent quarterly report, management had projected operating earnings of €330-370m for 2024/25.

On Tuesday, the company announced a change in its dividend policy. From the 2025/26 financial year on, Aurubis intends to distribute a higher share of profits to shareholders. The payout ratio is to rise to up to 30 per cent of operating post-tax group earnings. In 2023/24 it had paid 20 per cent and is targeting 25 per cent for 2024/25. The steel group Salzgitter remains the company’s largest shareholder with a holding of nearly 30 per cent of Aurubis, while drugstore chain founder Dirk Rossmann held around 11 per cent as of 6 October.