Shares of Brazilian mining giant Vale S.A. (VALE) traded lower in premarket activity on Friday, February 13, 2026, declining approximately 2% to $17.04. This movement followed the release of the company's fourth-quarter financial results, which revealed a significant net loss overshadowing underlying operational performance.
Substantial Impairments Drive Quarterly Loss
The company reported a net loss of $3.8 billion for the final quarter of 2025. This result was primarily driven by two major non-cash accounting charges. A substantial impairment of $3.5 billion was recorded against the company's Canadian nickel operations, held under its Vale Base Metals unit, reflecting a downward revision in long-term price assumptions for the metal. Additionally, Vale took a $2.8 billion write-off on deferred tax assets linked to certain subsidiaries.
Further impacting the bottom line, Vale increased its financial provisions related to the Samarco joint venture with BHP by $449 million. This adjustment is connected to ongoing litigation in the United Kingdom concerning the 2015 Fundão dam disaster.
Underlying Operational Strength and Shareholder Returns
Despite the headline loss, Vale's core mining operations demonstrated resilience. The company reported a pro forma EBITDA—its preferred measure of operating profit—of $4.8 billion for the quarter. Chief Executive Officer Gustavo Pimenta highlighted that Vale met or exceeded its operational guidance for the full year 2025, characterizing it as an outstanding performance.
In conjunction with the earnings, Vale announced a substantial return of capital to shareholders. A combined dividend and interest on capital payment totaling $1.8 billion is scheduled for distribution in March 2026. This follows an extraordinary payout of $1.0 billion that was made in January.
Broader Market Context Pressures Commodities
The report comes amid a softening environment for industrial commodities, which directly influences Vale's earnings given its status as a top global iron ore producer with significant nickel and copper portfolios. Iron ore prices faced downward pressure as markets in China prepared for the Lunar New Year holiday. On the Singapore Exchange, the benchmark March contract fell 1.24% to $98.35 per metric ton. The most active May contract on the Dalian Commodity Exchange declined 1.51% to 752.5 yuan as traders reduced positions ahead of the break.
The weakness extended across the base metals complex. On the London Metal Exchange, nickel prices dropped 2.3% to $17,030 per ton, while copper dipped 0.5% to $12,810.50. Analysts attributed the broader sell-off to a macro-driven risk-off sentiment and some profit-taking by investors.
Investor Focus on Future Guidance
While the sizable impairments and litigation provisions are likely to give some investors pause, attention is now turning to management's forward outlook. The company has scheduled a conference call for 11:00 a.m. Brasilia time on Friday, February 13. The webcast will be available via Zoom with simultaneous Portuguese translation. Market participants will be keen to hear management's commentary on the revised nickel price outlook, the timeline for Samarco litigation, and capital allocation plans for the coming year.
Vale's performance remains tightly coupled to global steel demand and industrial activity, particularly in China. The company's extensive logistics network, including railways and ports in Brazil, is a critical asset but also ties its fortunes closely to global trade flows and commodity cycles. The premarket stock reaction suggests investors are weighing the persistent operational cash flow generation against the significant one-time charges and the uncertain near-term commodity price environment.