Vale reported mixed results for the third quarter of 2026, missing earnings per share (EPS) estimates but slightly exceeding revenue forecasts. The company posted an EPS of $0.29, falling short of the $0.4035 expected by analysts, while revenue reached $10.6 billion, surpassing the $10.51 billion forecast. The stock closed at $11.39, up 1.88%, and saw minimal movement in after-hours trading.
The iron ore segment remained a challenge, with EBITDA down 20% year over year due to weaker pricing, higher bunker costs, and a stronger Brazilian real. Iron ore production declined 6% year over year, though sales of 86.3 million tons were slightly above the prior-year level. In contrast, Vale Base Metals delivered a strong quarter, with EBITDA rising more than 60% year over year to $1.1 billion, driven by operational strength in copper and nickel.
Despite the earnings miss, Vale highlighted positive financial metrics, including free cash flow of $2.2 billion and a reduction in expanded net debt to $16.4 billion. Management noted improvements in October production at Serra Norte, suggesting a recovery in the fourth quarter. The company also reiterated its 2026 guidance, with copper and nickel production expected to land in the upper half of their respective ranges.
Chief Executive Gustavo Pimenta emphasized the company's focus on operational excellence and long-term growth plans, including the Salobo CPF project and copper production targets. Finance chief Marcelo Bacci highlighted the benefits of currency and oil hedges, which generated over $700 million in cash benefits this year. However, risks such as iron ore price pressure, operational issues at Serra Norte, and weak global steel demand remain challenges.