Aurubis AG stock (DE0006766504): profits under pressure after copper theft and weaker metal prices

Aurubis AG has reported a sharp drop in earnings after a major metal theft scandal and lower refining charges weighed on results, while the group pushes ahead with growth projects in Europe and the US.

Aurubis AG, one of the world’s leading copper recyclers, remains under pressure after a difficult fiscal year marked by a major metal theft case and weaker treatment and refining charges. In its consolidated report for the 2023/24 financial year published on 12 December 2024, the company reported a significant decline in operating earnings before taxes (EBT), even as revenues held up on the back of robust copper demand, according to Aurubis financial report as of 12/12/2024.

For the 2023/24 financial year, Aurubis posted operating EBT of around EUR 287 million compared with about EUR 426 million in the prior year, reflecting higher energy and raw material costs and the financial impact of the metal theft case that came to light in 2023, as reported in the same document, according to Aurubis financial report as of 12/12/2024.

As of: 19.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Aurubis
• Sector/industry: Metals & mining, non-ferrous metals
• Headquarters/country: Hamburg, Germany
• Core markets: Europe, North America
• Key revenue drivers: Copper cathodes, copper products, recycling services
• Home exchange/listing venue: Frankfurt Stock Exchange (ticker: NDA)
• Trading currency: EUR

Aurubis AG: core business model

Aurubis focuses on the production and recycling of copper and other non-ferrous metals. The group operates smelters and recycling facilities that process copper concentrates, scrap and intermediate materials into high-purity copper cathodes, which serve as a base material for many industrial applications, according to the company’s description in its latest annual report, as cited by Aurubis financial report as of 12/12/2024.

Besides copper cathodes, the company produces a range of copper products such as wire rod, shapes and flat rolled products, as well as precious metals and specialty metals that arise as by-products of the smelting process. This diversified product portfolio helps Aurubis to capture value from different parts of the metal value chain and from circular economy trends, as discussed in its strategy presentation, according to Aurubis presentation as of 03/21/2024.

An important element of the business model is the recycling of complex metal-bearing materials. Aurubis processes electronic scrap, industrial residues and end-of-life metal products, generating fees for treatment and refining. This recycling focus helps to reduce dependence on primary copper concentrates and supports environmental and regulatory goals in Europe and North America, according to the company’s sustainability reporting, as noted by Aurubis sustainability report as of 01/31/2024.

Main revenue and product drivers for Aurubis AG

Aurubis generates a large share of its earnings through treatment and refining charges for processing copper concentrates and recycling materials, rather than from the outright sale of metals at market prices. This means profitability is strongly influenced by the level of treatment and refining charges (TC/RCs) agreed with mine operators and scrap suppliers, according to the 2023/24 annual report, as referenced by Aurubis financial report as of 12/12/2024.

Another earnings driver is the so-called copper premium, which Aurubis charges customers for high-quality cathodes and products on top of the metal price. Changes in regional demand, especially from the European electrical, construction and automotive industries, influence the level of this premium. In 2023/24, the company noted continued solid demand for copper products tied to electrification and renewable energy investments, according to management comments in the financial report, as summarized by Aurubis financial report as of 12/12/2024.

By-products such as sulfuric acid, precious metals and other minor metals also contribute to earnings. Pricing for these products can be volatile, but they provide an additional revenue stream and help to monetize the full metal content of raw materials. Aurubis highlighted the importance of sulfuric acid sales to the chemical industry and mining sector in its segment reporting, according to Aurubis financial report as of 12/12/2024.

The company has also been investing in growth projects, including a new recycling facility in the US state of Georgia. This plant is designed to process multi-metal recycling materials and is intended to expand Aurubis’ access to North American scrap markets. The project was presented as a strategic step to support the US energy transition and increase the company’s footprint in a key region, according to Aurubis press release as of 05/14/2024.

Conclusion

Aurubis AG is navigating a challenging environment shaped by lower treatment and refining charges, higher costs and the aftermath of a significant metal theft incident, which weighed on earnings in the 2023/24 financial year. At the same time, the company is pressing ahead with strategic expansion projects, including a major recycling investment in the US, underlining its ambition to benefit from global electrification and circular economy trends. For US-focused investors, the stock offers exposure to copper and recycling themes with a strong European base and growing North American footprint, but it also carries typical sector risks such as metal price volatility, regulatory developments and operational challenges in large-scale smelting operations.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.