Glencore Shares Rise Despite Profit Decline on Copper Growth Strategy

Glencore (LON: GLEN) shares experienced a boost despite a reported decrease in full-year profit, driven by investor confidence in the company's strategic shift toward copper production and promising second-half performance.

The markets responded positively to Glencore's ambitious copper production targets and shareholder returns, overshadowing the year-on-year profit dip. The stock has risen over 3% following the report.

The company announced a 6% decrease in Adjusted EBITDA to $13.5 billion, compared to $14.358 billion in the previous year. Net income attributable to equity holders was significantly lower at $363 million, a stark contrast to the $1.634 billion loss in 2024. Basic earnings per share also reflected this downturn, registering at $0.03, down from a loss of $0.13 per share in the prior year.

Despite these declines, Glencore plans to distribute $0.17 per share, totaling approximately $2 billion, paid in two equal installments. This includes a base distribution of $0.10 per share (c.$1.2 billion) and a top-up cash distribution of $0.07 per share (c.$0.8 billion) underpinned by the value of its Bunge NYSE-listed shares. The company's commitment to shareholder returns signals underlying financial strength and confidence in future performance.

Glencore's strategic focus on copper is a key driver behind the positive market sentiment. The company aims to become one of the world's largest copper producers, targeting approximately 1.6 million tonnes of annual production by 2035. Progress includes finalizing the KCC land access package, potentially unlocking approximately 300ktpa of copper production.

As stated by Glencore's Chief Executive Officer, Gary Nagle, “2025 was a year of significant progress, marked by a strong operational performance, continued portfolio optimisation and clear momentum for our copper-led growth strategy.” He emphasized the company's commitment to delivering on its 2026 priorities and supporting long-term value creation for shareholders.

While full-year results showed a decline in profit, the second half of 2025 demonstrated strong recovery and momentum, with Adjusted EBITDA increasing by 49% compared to the first half. This resurgence, coupled with strategic initiatives and shareholder returns, has instilled confidence in the markets.