METLEN ENERGY & METALS (=) : Lack of near-term catalysts - Downgrade to Neutral

Research evidence excerpt

METLEN ENERGY & METALS (=) : Lack of near-term catalysts - Downgrade to Neutral

Refinitiv

Investment summary

Metlen is an integrated Energy and Metals business. The Energy division accounts for

the majority (64%) of 2026e EBITDA and includes energy generation, supply (including

to end customers via the utility business), trading, management and EPC contracting,

which has enabled the expansion as well as constructing power projects for third parties

around the globe.

The Metals business (26% of 2026e EBITDA) is predominantly focused on bauxite

mining, alumina refining and aluminium smelting and is the largest vertically integrated

aluminium producer in the EU.

The business also has an Infrastructure & Concessions division which undertakes

construction and management of large infrastructure projects whilst also supporting the

company’s energy and metals divisions through the provision of technical expertise.

Figure 1: 2026e EBITDA split by segment

Infra & Conc

10%

Metals

26%

Energy

64%

Source: BNP Paribas Equity Research estimates

Investment programmes to deliver growth

Metlen laid out the investment programmes at its 2025 CMD with growth planned across

the segments. The growth in Energy is underpinned by ongoing development of the

company’s portfolio of renewable energy projects (mainly solar PV) including asset

rotations. Growth across the metals division comes from expansion of the company’s

existing operations across the integrated aluminium business, substantial expansion of

the company’s existing metallurgical defence activities, construction of a new gallium

recovery plant and commercial roll-out of a proprietary technique to recover valuable

metals from industrial waste (circular metals).