Mechel, one of the leading Russian mining and metallurgical groups, announced financial and operating results for 2025.
Accordingly, last year the company received a net loss of 78.6 billion rubles. ($893 million) compared to a net loss of 37.12 billion rubles. in 2024, and sales revenue amounted to 287 billion rubles. ($3.26 billion), up 26 percent year on year. The company's EBITDA was RUB 7.7 billion ($87 million), down 86 percent year-on-year.
The sharp deterioration in financial results was primarily due to lower demand in both the mining and metals segments, which led to lower sales volumes and prices, while rising production costs put significant pressure on profitability. In addition, continued import pressure, especially from China, and restrictions on access to key export markets amid sanctions further impacted the company's sales performance.
High interest rates also had a notable impact, increasing financing and debt servicing costs while slowing overall business activity. As a result, by the end of 2025, the company's net debt increased by eight percent year-on-year to RUB 279.3 billion (USD 3.17 billion), and its net debt to EBITDA ratio increased to 36.1x compared to 4.6x at the end of 2024.
At the same time, capital expenditures decreased by 36% year-on-year to RUB 11.5 billion. ($131 million) in 2025, reflecting the company's efforts to maintain liquidity in a difficult market situation
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