0001292814-26-001908
SEC filingSigma Lithium's FY25 revenue fell 27% to $110M due to a mine restructuring pause in Q4, but net loss narrowed slightly to $50.2M, with sequential cash flow recovery.
Sigma Lithium's FY2025 results reflect a challenging year marked by operational disruption and lithium market weakness. Net sales revenue declined 27.3% to $110.0 million from $151.4 million in FY2024. The decline was driven by a 36% drop in sales volume (150.5 kt vs 236.9 kt) due to a mine restructuring pause in the fourth quarter, and a 22% decrease in the average realized price to approximately $661 per tonne. Gross profit fell 41.8% to $18.4 million, with gross margin compressing from 20.9% to 16.7%. Operating loss widened to $24.1 million from $5.1 million, as the company incurred $8.0 million in idle capacity costs and a $7.9 million provision for inventory losses. However, net loss improved slightly to $50.2 million from $51.4 million, primarily due to a favorable swing in financial expenses—net financial expense improved by $50.6 million to $10.3 million, driven by foreign exchange gains of $13.7 million versus a loss of $32.8 million in the prior year. Basic and diluted EPS were ($0.45) versus ($0.46) in 2024.
As of December 31, 2025, Sigma Lithium had $6.2 million in cash and cash equivalents, down from $45.9 million at year-end 2024. Total assets stood at $293.7 million, down from $327.1 million. The sharp decline in cash was primarily due to deleveraging of trade finance lines. The company reported negative working capital of $151.2 million, reflecting current liabilities of $200.5 million versus current assets of $49.2 million. The current portion of loans and export prepayment totaled $127.3 million, including $100.6 million under the Synergy export prepayment agreement due December 2026. Total debt was $140.5 million (current and non-current), compared to $173.6 million at end of 2024. Accounts payable increased to $49.5 million, partly due to disputed amounts for services. The company maintains a $11.3 million cash collateral account tied to the Synergy agreement.
Operating activities generated $2.4 million of cash in FY2025, a significant improvement from the $18.3 million use of cash in FY2024. The improvement came from higher cash receipts from customers ($120.2 million vs $140.5 million) and lower operating cash outflows ($98.6 million vs $127.3 million), partly due to reduced production levels. Interest payments on debt totaled $19.1 million, down from $31.5 million. Investing activities used $12.0 million (down from $23.6 million), primarily for property, plant and equipment ($9.9 million) and exploration assets ($1.0 million). Financing activities used $33.3 million (vs. provided $53.7 million in 2024), reflecting net debt repayment. Free cash flow (operating minus capex) was negative $8.5 million, though the company ended the fourth quarter with positive operating cash flow of $9.0 million. Management’s liquidity outlook notes the execution of offtake agreements in early 2026 providing $96 million working capital revolver and additional cash generation of $44.6 million from lithium fines sales.
Management attributed the revenue decline to the operational restructuring initiated in October 2025, which involved pausing mining operations to transition to larger equipment and bring operations in-house. The restructuring is expected to improve operating margins. During the pause, the industrial plant processed tailings to produce intermediate products. The Phase 2 expansion remains a key focus, with long-lead items expected in Q2 2026 and construction in H2 2026. The company expects additional capacity of 250 ktpa, bringing total annual capacity to 520 ktpa. On the financial risk side, the company disclosed material weaknesses in internal controls, including an ineffective control environment, risk assessment, monitoring, and IT general controls. Management has outlined a remediation plan, including hiring external specialists and expanding the finance team, targeting resolution by end of FY2026.
Sigma Lithium operates a single reportable segment—lithium oxide concentrate production. Revenue by customer geography: Switzerland ($54.6M), United Arab Emirates ($50.0M), Singapore ($1.3M). The company reported a total injury frequency rate of 1.60 and 879 consecutive days without a lost-time injury. Stock-based compensation expense was $1.8 million, down from $8.1 million due to fewer grants. The company has a tax incentive reserve of $2.7 million from the SUDENE benefit, reducing income tax by 75% for 10 years. Deferred tax assets of $6.2 million were recognized, partially offset by a full reversal of $8.2 million in deferred tax assets related to Brazilian tax loss carryforwards. Lease liabilities totaled $2.8 million. The company had no outstanding receivables with exposure to market price fluctuations as of December 31, 2025.