Ferrexpo (LSE:FXPO) said iron ore production in the fourth quarter of 2025 fell short of plan at 1.1 million tonnes after an escalation in missile and drone attacks on Ukraine’s energy, transport and port infrastructure. Despite these pressures, full-year output held up at 6.1 million tonnes, exceeding 2023 levels, although down 9% year on year from 2024.
During 2025, the group undertook a significant shift in its product mix, increasing production of premium 67% iron ore concentrate to a record 2.9 million tonnes. This higher-grade product accounted for 48% of total output, compared with just 10% in the prior year, reflecting Ferrexpo’s focus on maximising value and customer demand in challenging operating conditions.
Operationally, the company continued to tightly manage working capital and reduce non-essential capital expenditure and corporate social responsibility spending. Ferrexpo ended the year with a net cash position of approximately $47 million and no debt, despite ongoing constraints including the suspension of VAT refunds and disruption to export logistics. The deterioration of port access forced a costly shift back towards rail transport, limiting the group’s ability to serve non-European markets efficiently.
Looking ahead, Ferrexpo’s outlook remains shaped by pressure on revenues and profitability stemming from the conflict and logistical challenges. However, technical indicators point to improving share price momentum, and recent operational decisions highlight the company’s resilience and commitment to maintaining responsible operations under extreme conditions. Valuation remains constrained by negative earnings, but the group’s strong balance sheet provides a degree of financial stability.
More about Ferrexpo
Ferrexpo is a Switzerland-headquartered producer and exporter of premium-grade iron ore products, supplying high-quality pellets and concentrate to global steelmakers to help reduce carbon emissions and improve productivity. Its core assets are located in Ukraine, and the company is listed on the London Stock Exchange, where it is a constituent of the FTSE All-Share and FTSE4Good indices.
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