Vale Posts Strong Q2 Earnings, Narrows Production Guidance Ranges

Vale SA, one of the world's largest producers of iron ore and iron ore pellets, reported solid year-over-year results in its second-quarter 2026 operating performance. The company met annual production guidance due to higher volumes, improved price realization, and gains at its base-metals operations, which lifted pro forma EBITDA 19% year over year to $4.1 billion.

Vale announced $1.7 billion in dividends and interest on capital, scheduled for payment in September, and extended its share repurchase program by authorizing a new buyback program for up to 100 million shares over 18 months, equivalent to 2.3% of outstanding shares.

The company narrowed its copper and nickel production guidance ranges, implying higher midpoints, following continued operating improvements. Iron ore production reached Vale's highest second-quarter level since 2018, supported by the ramp-up of the Capanema and Vargem Grande projects and record output at the S11D operation.

Vale began commissioning the second long-distance conveyor belt at S11D in July as part of the Serra Sul +20 project, which is expected to add 20 million metric tons of capacity at Serra Sul and expand Vale's high-grade product portfolio. The company also expects to begin commissioning its Compact Crusher project in the fourth quarter, designed to address constraints involving jaspilite ore at Serra Sul.