Aurubis: Investment Phase Nears Completion, Earnings Momentum Builds

Aurubis upgrades its 2025/26 profit guidance, driven by strong copper demand and prices, as its $800M US recycling plant and other expansions near full operation.

European copper producer Aurubis is entering a pivotal phase, with a multi-year, multi-billion euro capital investment program approaching its final stages. The strategic shift from significant construction spending to harvesting returns is becoming evident, underscored by the company's recent decision to raise its full-year earnings guidance.

Revised Guidance Points to Stronger Performance

In a clear signal of improving operational performance, Aurubis has upgraded its forecast for the 2025/26 financial year. The company now anticipates an operating result before taxes (EBT) in the range of €375 million to €475 million. This marks a substantial increase from its previous guidance of €300 million to €400 million. Management cites stronger metal prices and robust demand for copper products as key drivers.

The first quarter of the fiscal year provided an early indication of this positive trend. Aurubis reported an operating EBT of €105 million, a significant jump from the €68 million recorded in the preceding quarter. Shareholders are also seeing a direct benefit, with the Annual General Meeting in February approving a dividend of €1.60 per share, representing an increase of approximately seven percent year-over-year.

Strategic Projects Approach Operational Ramp-Up

The core of Aurubis's growth strategy hinges on three major projects now on the final stretch toward full operation. The centerpiece is the new Aurubis Richmond recycling plant in Georgia, USA—the nation's first integrated multi-metal recycling smelter. With an investment volume of approximately $800 million, the facility processed its first complex recycling materials in January 2026. A second expansion phase is scheduled for this fiscal year, with full annual capacity of 180,000 tonnes expected in the first half of 2026.

Two other major expansions are proceeding in parallel:

• Complex Recycling Hamburg (CRH): Commissioning is set for the first half of 2026, adding 30,000 tonnes of recycling capacity.
• Aurubis Bulgaria: An expansion in the second half of 2026 will boost the site's capacity to 340,000 tonnes—an increase of roughly 50 percent.

Of the total €1.7 billion earmarked for this comprehensive growth program, Aurubis has already drawn down around 80 percent of the capital.

ROCE Metric Hints at Future Potential

While the upgraded profit forecast is promising, the company's operational Return on Capital Employed (ROCE) indicates that the full financial benefit of its investments is yet to be realized. The metric recently stood at 7.8 percent, down from 11.7 percent the previous year. This decline reflects the current ramp-up phases of new facilities; the capital is already deployed on the balance sheet, but the corresponding full earnings contributions are still pending.

This dynamic forms the central investment thesis for the coming quarters. As the Georgia, Hamburg, and Bulgaria facilities reach their planned operational cadence, the gap between capital employed and returns generated is expected to narrow substantially. The raised annual guidance offers a preliminary glimpse of the earnings power set to be unlocked.