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[Ferro-Alloys.com] OMH FY2025 NPAT US$2.3 MILLION

HIGHLIGHTS

Profit after tax attributable to owners of the Company for the year ended 31 December 2025 (“FY2025”) of US$2.3 million as compared to US$9.3 million for the year ended 31 December 2024 (“FY2024”).

Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) of US$50.7 million for FY2025 compared with US$76.0 million for FY2024.

Basic and diluted earnings per ordinary share of the Group of 0.31 US cents for FY2025 as compared to 1.22 US cents for FY2024.

Revenue from operating activities for FY2025 was US$636.3 million, representing a 3% decrease over FY2024. The decrease was mainly due to lower average selling prices in FY2025.

Gross profit margin decreased to 9.8% in FY2025, from 17.3% in FY2024.

The Group’s share of results from its associates for FY2025 was US$3.7 million, including discontinued associate operations.

Total borrowings decreased from US$219.7 million as at 31 December 2024 to US$213.1 million as at 31 December 2025 mainly due to the repayment of terms loans during the year, offset by higher utilisation of trade financing facilities as at 31 December 2025. As a result, total borrowings to equity ratio decreased marginally from 0.52 times as at 31 December 2024 to 0.50 times as at 31 December 2025.

Consolidated cash position of US$23.9 million (included cash collateral of US$10.6 million) as at 31 December 2025 as compared to US$67.9 million (included cash collateral of US$8.3 million) as at 31 December 2024.

Net cash used in operating activities of US$17.8 million for FY2025.

Net asset backing per ordinary share of the Group of 55.25 US cents as at 31 December 2025 as compared to 54.97 US cents per ordinary share as at 31 December 2024.

OM HOLDINGS LIMITED – GROUP KEY FINANCIAL RESULTS

* Amount less than US$100,000

FINANCIAL ANALYSIS

The Group recorded revenue of US$636.3 million for FY2025, representing a 3% decrease from US$654.3 million recorded for FY2024. The decrease in revenue was mainly attributed to lower average selling prices in FY2025.

Average selling prices for FeSi in FY2025 were lower as compared to FY2024, reflecting sustained weak demand from the downstream steel market and increased competition from Russian-origin FeSi.

According to Platts, FeSi prices trended downwards in the first half of FY2025, falling from US$1,185 per tonne CIF Japan at the end of December 2024, to US$1,060 per tonne CIF Japan at the end of June 2025. Prices subsequently stabilized and recovered marginally in the second half of FY2025, increasing slightly to US$1,080 per tonne at the end of September 2025 and closed at US$1,090 per tonne CIF Japan at the end of December 2025. This was supported by stricter custom enforcement on Chinese-origin FeSi, which reduced supply and competition in the market.

Average selling prices for Mn alloys in FY2025 were also lower as compared to FY2024. This was mainly due to a temporary spike in Mn alloy prices in mid-2024, due to the supply suspension from South32’s Groote Eylandt operations as a result of cyclone damage.

SiMn prices opened at US$885 per tonne CIF Japan at the end of December 2024, increased to US$965 per tonne CIF Japan at the end of March 2025, before declining over the remainder of the year to close at US$903 per tonne CIF Japan at the end of December 2025, amid weaker demand expectations in Asia.

As an indication, the index Mn ore prices published by Fastmarkets MB increased from US$4.08/dmtu CIF China at the end of December 2024, to US$4.97/dmtu CIF China at the end of March 2025, before declining to US$4.20/dmtu CIF China at the end of June 2025. Prices then rebounded in the second half of the year and closed at US$4.71/dmtu CIF China at the end of December 2025.

As a result of the above, the Group recorded a lower gross profit of US$62.2 million in FY2025 (with a gross profit margin of 9.8%) as compared to a gross profit of US$113.2 million in FY2024 (with a gross profit margin of 17.3%). In addition, a net inventory write-down of US$4.1 million was recorded in cost of sales in FY2025, as compared to a US$7.3 million net write-back of inventories in FY2024. Excluding the inventories written-down, the FY2025 gross profit margin was 10.4% (2024: 16.2%).

Other income increased by US$8.3 million mainly due to one-off gains recognized in FY2025, which included gain on bargain purchase of a subsidiary, gain on disposal of a subsidiary, and gain on disposal of an investment property.

Total distribution costs decreased by approximately 6% in FY2025, mainly due to lower freight rates in FY2025 as compared to FY2024

Administrative expenses in FY2025 decreased by US$1.6 million, representing approximately a 9% decrease as compared to FY2024. This was mainly due to lower legal and professional fee expenses in FY2025.

Net realised exchange loss was lower by US$3.3 million in FY2025 as compared to FY2024, and a net unrealised foreign exchange gain of US$0.3 million was recorded in FY2025 as compared to a net unrealised foreign exchange loss of US$6.4 million in FY2024. The higher losses in FY2024 were mainly due to the translation of Malaysian Ringgit (“MYR”) denominated payables to United States Dollar (“USD”), with the MYR strengthening against the USD in FY2024.

Finance costs for FY2025 decreased by approximately 20% to US$23.6 million (as compared to US$29.5 million for FY2024) mainly due to lower total borrowings in FY2025, as amortising term loans were continuously paid off in FY2025, as well as lower interest rates following the successful refinancing of the OM Sarawak Project Finance loans in early 2025.

The Group’s share of results from an associate of US$4.0 million, presented separately as a discontinued operation, arose from the 13% effective interest in Tshipi é Ntle Manganese Mining (Pty) Ltd (“Tshipi”). This was presented separately as a discontinued operation due to the Group’s impending disposal of its 26% investment in Ntsimbintle Mining Proprietary Limited (“NMPL”), which holds the Group’s investment in Tshipi.

Income tax credit of US$7.3 million in FY2025 as compared to income tax expense of US$8.2 million in FY2024, was primarily due to a loss before tax position in FY2025, as compared to profit before tax position in FY2024.

The Group recorded a total profit for the year after tax of US$1.1 million for FY2025,

as compared to US$9.7 million for FY2024. The Group’s basic and diluted earnings per ordinary share was 0.31 US cents for FY2025, as compared to 1.22 US cents for FY2024.

The Group recorded a lower EBITDA of US$50.7 million in FY2025 as compared to US$76.0 million for FY2024, due to reasons stated above.

Results Contributions

The contributions from the Group’s business segments were as follows:

* revenue contribution from segments is subsequently adjusted for intercompany sales on consolidation

Mining

This category included the contribution from the Bootu Creek Manganese Mine (the “Mine”).

The Mine is 100% owned and operated by the Company’s wholly owned subsidiary OM (Manganese) Ltd (“OMM”). The Mine has been under care and maintenance since January 2022.

The mining segment recorded revenue of US$0.6 million in FY2025, arising from the sale of residual Mn ore inventories. OMM recorded a lower negative contribution of US$2.0 million for FY 2025, as compared to US$8.1 million for FY2024. This was mainly due to net unrealised foreign exchange gains in FY2025, as compared to net unrealised foreign exchange losses in FY2024.

The Ultra Fines Plant (“UFP”) planned production trials were conducted in December 2024, January and April 2025 and the results were in line with expectations. However, the hydro-mining feed to the UFP encountered uneven feed rates and did not perform at its intended optimum operating efficiency. Additional work is required to address the hydro-mining feed before a production restart is approved.

Smelting

This business segment covers the operations of the FeSi and Mn alloy smelter operated by OM Sarawak.

The smelting segment recorded revenue of US$474.5 million for FY2025 as compared to US$528.0 million for FY2024. The decrease in revenue was mainly due to lower volumes of alloys sold in FY2025 at lower average selling prices. As an indication, the Group produced 191,087 tonnes and 311,791 tonnes of FeSi and manganese alloys respectively in FY2025 (FY2024: 190,517 tonnes and 317,995 tonnes of FeSi and manganese alloys respectively).

The smelting segment recorded a negative contribution of US$6.9 million in FY2025, as compared to a positive contribution of US$27.7 million in FY2024. This was mainly attributable to lower revenue in FY2025 as highlighted above, and an inventory write-down of US$1.2 million in FY2025, as compared to a US$11.9 million write-back in FY2024.

Marketing and Trading

Revenue from the Group’s marketing and trading operations decreased by 3% from US$675.0 million in FY2024 to US$654.6 million in FY2025, primarily due to lower ore trading volumes. Profit contribution from these operations decreased slightly to US$19.1 million in FY2025 as compared to US$22.6 million in FY2024. The lower profit contribution was mainly attributable to lower revenue in FY2025, partially offset by various other income contributions in FY2025, which included a gain on bargain purchase of a subsidiary, gain on disposal of a subsidiary, and gain on disposal of an investment property.

Others

This segment includes the corporate activities of OMH as well as the procurement services rendered by a number of the Group’s subsidiaries.

The revenue recognised in this segment mainly related to procurement fees, logistics services and other services rendered by certain subsidiaries of the Group. Revenue decreased by US$39.4 million in FY2025 as compared to FY2024, mainly due to reduced intercompany services provided. Higher profit contribution of US$2.7 million from this segment in FY2025 as compared to US$0.1 million in FY2024, was mainly due to net unrealised foreign exchange gains in FY2025 as compared to net unrealised foreign exchange losses in FY2024.

FINANCIAL POSITION

The Group’s property, plant and equipment (“PPE”) as at 31 December 2025 decreased to US$385.9 million from US$408.2 million as at 31 December 2024 mainly due to PPE depreciation charge offset by PPE additions and a foreign exchange revaluation for the year.

An investment property was disposed in FY2025 for a consideration of S$2.7 million (approximately US$2.1 million), which resulted in a gain on disposal of US$1.7 million for the year.

As at 31 December 2025, the Group’s consolidated cash position was US$23.9 million (including cash collateral of US$10.6 million) as compared to US$67.9 million (including cash collateral of US$8.3 million) as at 31 December 2024. For FY2025, net cash used in operating activities was US$17.8 million as compared to net cash generated of US$83.3 million for FY2024.

Inventories as at 31 December 2025 of US$257.9 million were lower than the inventory balance of US$313.9 million as at 31 December 2024 mainly due to lower raw material and finished goods inventory balances. The decrease was mainly due to consumption of raw materials in FY2025, lower consignment inventories and lower power inventories due to utilisation. There was also a US$4.3 million write-down of inventories during the year due to a lower estimated net realisable value of inventories. As at 31 December 2025, the Group’s inventories under consignment arrangements amounted to US$5.9 million (31 December 2024 – US$40.6 million).

Trade and other receivables increased by US$3.5 million, to US$45.9 million as at 31 December 2025, as compared to US$42.4 million as at 31 December 2024. This increase was mainly due to timing differences between shipments and collections, partially offset by a reduction in other receivables following the settlement that resulted from the Group regaining its 90% shareholdings in OM Materials (Qinzhou) Co Ltd (“OMQ”).

Total trade and other payables decreased by US$53.0 million to US$149.2 million as at 31 December 2025, from US$202.2 million as at 31 December 2024, mainly due to timing differences between purchases and payments to suppliers.

Contract liabilities decreased by US$34.8 million to US$12.2 million as at 31 December 2025 from US$47.0 million as at 31 December 2024 mainly due to lower upfront payments received from customers.

With the impending settlement of the Group’s disposal of its investment in an associate (NMPL), in accordance with International Financial Reporting Standards, the Group’s investment in NMPL is classified as “Assets held for sale” in the Statements of financial position as at 31 December 2025.

The Group’s net asset backing per ordinary share was 55.25 US cents per ordinary share as at 31 December 2025 as compared to 54.97 US cents per ordinary share as at 31 December 2024.

Capital Structure

As at 31 December 2025, the Company had on issue 766,256,801 ordinary shares.

As at 24 February 2026, a total of 100,497,591 shares were listed on Bursa Malaysia and 665,759,210 shares were listed on the Australian Securities Exchange.

INVESTMENT IN NTSIMBINTLE MINING PROPRIETARY LIMITED

OMH has an effective 13% interest in Tshipi through its 26% strategic partnership with Ntsimbintle Holdings Proprietary Limited.

OMH (26%) and Ntsimbintle Holdings Proprietary Limited (74%) are shareholders in NMPL. NMPL holds a 50.1% interest in Tshipi, an independently operated and managed black-empowered manganese mining company that operates the Tshipi Borwa Manganese Mine located in the world class Kalahari Manganese field in South Africa. The Tshipi Borwa Manganese Mine currently has a production capacity of 3.3 to 3.6 million tonnes per annum.

The Group equity accounted for its 13% effective interest in Tshipi’s results up to and including November 2025, which amounted to a contribution of US$4.0 million for FY2025, as compared to US$4.3 million for FY2024. The Group ceased equity accounting for its 13% effective interest in Tshipi in December 2025 due to the impending settlement arising from the disposal of its investment in NMPL, and the Group’s share of its results from NMPL was presented separately as discontinued operations in the Consolidated statement of Comprehensive Income.

In FY2025, Tshipi declared and paid a total dividend of ZAR 600 million (approximately US$32.4 million) to its two shareholders. The Group received its share of these dividends, amounting to ZAR 79.8 million (approximately US$4.4 million, before withholding tax) from NMPL in FY2025.

As announced on 13 May 2025, the Group has entered into a conditional binding Sale and Purchase Agreement through its wholly owned subsidiary OMH (Mauritius) Corp., for the sale of its 13% effective interest in Tshipi. On 29 January 2026, the suspensive conditions were fulfilled and/or waived, and the transaction is now unconditional. As at the release of this announcement, the Group expects to complete the share transfer for final gross total cash consideration of ZAR 1.95 billion (approximately US$120 million), by the close of business day today in South Africa.

OTHERS

With the Group having recorded a net profit after tax attributable to owners of the Company of US$2.3 million for FY2025, the Board has resolved not to declare a final dividend for FY2025 with a focus to retain cash for future organic growth initiatives and reducing net debt. This is in line with the dividend policy announced on 28 February 2023, taking into consideration the cash flow requirement, future operating and investment needs of the Company.

• [Editor:tianyawei]