Metlen Energy & Metals shares tumbled on Friday after the U.K.-based industrial group slashed its 2025 earnings outlook, citing significant cost overruns and stalled asset sales. The revision marks a sharp pivot from previous forecasts that saw the company crossing the billion-euro profit threshold.
The sell-off follows a disclosure that 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) are now projected to be 25% lower than previous estimates. Metlen had formerly signaled that EBITDA would surpass the 1 billion euros ($1.18 billion) milestone. Management attributed this downward revision to unexpected cost escalations within the M Power Projects unit and a slower-than-expected timeline for closing transactions involving its renewable energy assets.
Navigating Operational Setbacks
Despite the immediate pressure on the stock, which fell 14% to 38.45 pence during midday trading, the company highlighted a resilient start to the current year. Metlen confirmed that its mid-term strategic guidance remains intact, buoyed by anticipated deal-making activity and a stable core business environment.
According to the company's statement, the following factors are expected to shape the near-term outlook:
- Potential mergers and acquisitions in Western Europe are slated for completion in the short term.
- Operational performance in the current fiscal year has started according to internal projections.
- Preliminary full-year financial results are scheduled for release on March 31.
The market reaction reflects broader investor sensitivity to project-level delays in the renewables sector. While the 2025 guidance cut weighed heavily on the share price—which is now down 13% year-to-date—Metlen maintains that the fundamental drivers of its mid-term strategy remain unchanged.
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