De Beers H1 2026 Results: Improved Performance Despite Price Pressure

De Beers reported a stronger financial performance for the first half of 2026, narrowing its operating losses even as rough diamond prices fell sharply. The mining group attributed the improvement to higher production and sales volumes, cost discipline, and operational efficiency that helped offset weaker market pricing.

For the six months ended 30 June 2026, De Beers recorded revenue of US$1.58 billion, down 19% from US$1.95 billion in the same period of 2025. The decline primarily reflected lower realised prices for rough diamonds, while overall operational performance showed signs of resilience.

On an underlying basis, the company reduced its EBITDA loss to US$113 million, an improvement from a US$189 million loss a year earlier. Underlying EBIT also improved, narrowing to a US$209 million loss from US$303 million previously. The underlying EBITDA margin strengthened to -7%, compared with -10% in the prior year, signalling better cost absorption and improved operating leverage despite the lower price environment.

The average realised price for rough diamonds fell markedly, dropping 32% to US$105 per carat. This decline reflected a weaker sales mix and the continued effects of inventory-balancing measures introduced in 2025, which contributed to a 16% decline in the average rough diamond price index over the period.

Operational metrics were more positive. Rough diamond production rose by 46% to 14.9 million carats, while sales volumes increased by 13% to 12.4 million carats. Management said improved supply availability and steadier trading activity supported higher volumes, helping offset the revenue impact of lower prices. Unit production costs fell by 26% to US$64 per carat, reflecting greater operational efficiency and cost control measures. Capital expenditure was trimmed by roughly one-third to US$115 million, underscoring a continued focus on financial discipline across the business.

During the second quarter alone, De Beers sold 6 million carats of rough diamonds, generating US$665 million in revenue. While sales volumes in Q2 were broadly in line with the same quarter last year, revenue was materially lower than the US$1.2 billion reported in Q2 2025, illustrating the ongoing pressure on rough diamond prices and the effect of the changed sales mix.

Looking ahead, De Beers reaffirmed its 2026 production guidance of 21–26 million carats. The company cautioned that scheduled maintenance at its Orapa and Jwaneng operations, together with a proposed temporary production pause at the Venetia mine in South Africa, are expected to weigh on output in the second half of the year. Management also reiterated its unit cost guidance of approximately US$80 per carat for 2026, reflecting the anticipated operational mix and planned maintenance activities.

Overall, the first-half results suggest De Beers is prioritising operational stability and cash discipline while navigating a tougher pricing environment for rough diamonds. Higher production and greater sales volumes helped mitigate the fall in prices, and targeted cost reductions lowered unit costs and capital spending. These moves contributed to smaller underlying losses and a stronger EBITDA margin compared with the prior year.

Market participants will be watching how the company’s production plans, scheduled mine maintenance and any further changes to sales strategy influence volumes, costs and realised prices in the remainder of 2026. For now, De Beers’ H1 performance demonstrates that operational improvements and financial discipline can partially offset cyclical price weakness in the global diamond market.