Mechel, one of the leading Russian mining and steel groups, has announced its financial and operational results for 2025.
Accordingly, last year, the company posted a net loss of RUB 78.6 billion ($893 million), compared to a net loss of RUB 37.12 billion in 2024, while its sales revenue amounted to RUB 287 billion ($3.26 billion), down by 26 percent year on year. The company’s EBITDA amounted to RUB 7.7 billion ($87 million), decreasing by 86 percent year on year.
The sharp deterioration in financial results was mainly due to declining demand across both mining and metallurgical segments, resulting in lower sales volumes and prices, while rising production costs significantly pressured margins. In addition, continued pressure from imports, particularly from China, and restricted access to key export markets amid sanctions further weighed on the company’s sales performance.
High interest rates also had a notable impact, increasing financial expenses and debt servicing costs, while slowing overall business activity. As a result, the company’s net debt rose by eight percent year on year to RUB 279.3 billion ($3.17 billion) by the end of 2025, while its net debt-to-EBITDA ratio surged to 36.1x, compared to 4.6x at the end of 2024.
Meanwhile, capital expenditures declined by 36 percent year on year to RUB 11.5 billion ($131 million) in 2025, reflecting the company’s efforts to preserve liquidity amid the challenging market environment.