Russian mining and metals company Mechel recorded a net loss of 41.47 billion rubles in the first half of 2026, its worst result since 2015.
The figure marks a 2.4 percent increase in losses compared with the same period a year earlier, according to the group's latest financial statements prepared under International Financial Reporting Standards.
Total revenue for the Moscow-based industrial group fell 23 percent year-on-year to 117.35 billion rubles during the six-month period. Adjusted EBITDA, a key measure of core operational profitability before interest, taxes, depreciation, and amortization, slipped into negative territory at minus 6.053 billion rubles, down from positive 5.69 billion rubles in the first half of the previous year.
Mechel is one of Russia's largest vertically integrated resource companies, combining coal and iron ore mining operations with major steel production facilities. The corporation is a primary supplier of coking coal, a critical raw material used in blast furnace steelmaking, as well as steam coal used for electricity generation.
Market recovery and interest rates
Financial expenses for the corporation contracted by 1.9 percent to 26.3 billion rubles. Mechel noted that the reduction in financing overhead was primarily driven by recent cuts to the key interest rate set by the Central Bank of Russia, which governs borrowing costs for domestic industrial firms.
Company management highlighted that trading conditions began to show signs of improvement in the latter half of the second quarter. In its financial report, Mechel stated that the domestic coal market returned to growth as global price quotes recovered and seasonal demand from steelmakers strengthened.
The rebound in market demand allowed the company to expand overall coal extraction rates and increase shipments of its highest-margin coal and steel products to buyers.
Downturn across Russian mining sector
The severe earnings drop at Mechel comes alongside similar financial headwinds facing other major resource producers in the country. Diamond mining monopoly Alrosa also reported a net loss under international reporting standards of 9.54 billion rubles for the first half of the year.
Alrosa, which dominates Russian diamond extraction and accounts for a major share of global rough diamond supply, had posted a net profit of 40.6 billion rubles in the corresponding six-month period a year earlier.
