Metlen Q1 revenue jumps by more than a third

(Sharecast News) - Metlen Energy & Metals reported a 37% rise in first-quarter revenue on Thursday, supported by growth across energy, metals and infrastructure, as the group continued to reshape its business around energy transition, critical raw materials and industrial technologies.

The FTSE 100 company said revenue rose to €2.05bn in the three months ended 31 March, from €1.50bn a year earlier.

Revenue in the energy sector increased 39% to €1.64bn.

Within that, the fully integrated energy utility business generated revenue of €997m, up 6%, while the renewables, storage and energy transition platform, M RESET, reported revenue of €644m, up 168%.

Executive chairman Evangelos Mytilineos said Metlen had started 2026 with "strong operational momentum" across all business sectors.

"Our continued investments in energy transition, critical raw materials and defence, combined with disciplined execution, position the company to navigate a complex geopolitical environment while delivering sustainable growth," he said.

Metlen said it had simplified its energy operations into two integrated platforms - a fully integrated utility covering power generation, retail supply, gas sourcing and trading; and M RESET, covering renewables, asset rotation, storage development, grids and data centres.

It also completed the restructuring of its former MPP activities, integrating them into M RESET to create what it described as a focused platform for selective international opportunities.

In energy, strategic agreements with PPC Group and Tsakos Group strengthened the company's energy storage pipeline to about 2GW across Greece and international markets.

Metlen also signed a memorandum of understanding with Shell for the supply of up to 1 billion cubic metres of gas per year between 2027 and 2031.

The company sold a 283MW UK solar portfolio to Schroders Greencoat during the quarter, in line with its asset rotation strategy.

Revenue in the metals sector rose 3% to €234m.

Alumina production increased 2.1% to 215,000 tonnes, while primary aluminium output fell 4.9% to 42,000 tonnes.

Recycled aluminium production rose 19.3% to 16,000 tonnes, leaving total aluminium production broadly flat at 58,000 tonnes.

Metlen said the metals business benefited from supportive aluminium pricing, resilient premia and its fully integrated production model.

The company said it advanced its bauxite, alumina and aluminium investment programme during the quarter, supported by European Investment Bank financing, including Europe's first industrial-scale gallium production facility.

It said there was strong offtake interest from the US, Japan and Europe, with agreements expected soon.

Initial gallium production was expected in 2027, ramping up to 50 tonnes per year by 2028.

Its circular metals initiative also progressed, supported by positive pilot plant results, with optimisation of the expansion plan expected to be finalised later this year.

Metlen said M Technologies, its defence and industrial applications business, continued to scale during the quarter through the acquisition of an additional facility, the former NK Trailers site, bringing total operational units to six.

It also strengthened its collaboration with Naval Group, delivering equipment for the FDI frigate programme and signing a new memorandum of understanding for potential cooperation on submarine and surface vessel projects.

Revenue in infrastructure and concessions almost doubled to €177m from €92m.

Metlen said all projects progressed smoothly and on schedule, with METKA ATE maintaining a total backlog of more than €2.2bn, including projects at an advanced contracting stage.

In February, Metlen agreed to take a 24% stake in the concessionaire for the Northern Road Axis of Crete, or VOAK, Chania-Heraklion section, while METKA ATE agreed to take a 30% stake in the related construction joint venture.

During the quarter, METKA signed contracts for the construction of a casino and hotel complex in Maroussi and the Holocaust Museum in Thessaloniki.

It was also named preferred bidder for the Skaramangas Triple Interchange project.

Metlen said the first quarter confirmed the strength of its diversified business model, with all sectors contributing to growth.

It said geopolitical tensions and ongoing conflicts continued to affect energy markets, supply chains and defence demand, but also highlighted the strategic relevance of its activities in energy security, critical raw materials and defence.

Management said it remained cautiously optimistic for 2026, supported by a strong project pipeline, rising demand and prices across core sectors, and continued execution of the investment programme.

Further details were expected at the company's annual general meeting on 21 May.

At 0952 BST, shares in Metlen Energy & Metals were up 0.62% at 38.44p.

Reporting by Josh White for Sharecast.com.

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