De Beers recorded an underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of $511 million in 2025, swinging from a $25 million loss in the prior year, as challenging trading conditions and stock rebalancing initiatives weighed on earnings.
As reported last week, the company also recognised a $2.3 billion impairment to its carrying value, driven by lower forecast prices amid shifting consumer preferences between natural and laboratory-grown diamonds, as well as a surplus of rough diamonds relative to demand.
Total revenue remained subdued at $3.5 billion, including rough diamond sales of $3 billion.
The consolidated average realised price declined 7% to $142 per carat, primarily due to a 12% decrease in the average rough price index and the impact of stock rebalancing initiatives, whereby low-demand assortments were sold at lower prices.
The trading business generated losses of $424 million from selling inventory purchased at higher prices into a weaker market.
Unit costs, however, improved 8% to $86 per carat, with lower production volumes offset by cost reduction initiatives.
Capital expenditure decreased 34% to $353 million, reflecting cash preservation measures.
Rough diamond production declined 12% to 21.7 million carats as the business adjusted output to match prevailing demand.
Production declined across Botswana, Namibia, and Canada, while South Africa's Venetia mine maintained prior-year levels.
De Beers advanced its Origins strategy during the year, signing the Luanda Accord for natural diamond marketing, launching campaigns in the US and India, and introducing ORIGIN De Beers Group, a branded polished diamond offering backed by the Tracr traceability platform.
Production guidance for 2026 is set at 21–26 million carats, with unit costs expected to decline to approximately $80 per carat.
Near-term trading conditions are expected to remain challenging, though medium-term improvement is anticipated as inventory levels normalise.
Anglo American continues to pursue a dual-track separation for De Beers, with a structured sale process currently underway.
Below are excerpts from the interim financial report gleaned by Rough & Polished.
What was De Beers' financial performance in 2025?
Total revenue remained subdued at $3.5 billion (2024: $3.3 billion), including rough diamond sales of $3.0 billion (2024: $2.7 billion). Lower average rough price index and stock rebalancing initiatives had a significant impact on earnings, resulting in an underlying EBITDA loss of $511 million (2024: loss of $25 million). This was primarily due to the impact of the stock rebalancing initiatives in the trading business, whereby stock on the balance sheet, which was purchased at a higher price, was subsequently sold at a significantly lower effective index, generating trading losses of $424 million (2024: loss of $50 million). An impairment of $2.3 billion (before tax and non-controlling interests) (2024: $2.9 billion) to Anglo American's carrying value of De Beers has been recognised within special items and remeasurements.
How did diamond production and sales volumes change in 2025?
The mining operations delivered solid operational performance at lower output levels, as the business produced into prevailing demand. Consequently, rough diamond production reduced by 12% to 21.7 million carats (2024: 24.7 million carats). Total rough diamond consolidated sales volumes of 20.9 million carats (2024: 17.9 million) were broadly in line with De Beers' share of production globally, as the business supplied into areas experiencing demand.
What was the average realised price for De Beers' diamonds in 2025, and how did it compare to 2024?
The full year consolidated average realised price declined by 7% to $142 per carat (2024: $152 per carat), primarily due to a 12% decrease in the average rough price index and the impact of stock rebalancing initiatives (whereby low-demand assortments are sold at lower prices), partially offset by strong demand for higher value stones. The average rough price index does not reflect the impact of rebalancing initiatives. The equivalent price index reduction, including the impact of stock rebalancing action, would be a 25% year-on-year decrease.
How did each mining region perform operationally in 2025?
In Botswana, production reduced by 16% to 15.1 million carats (2024: 17.9 million carats), following planned reductions at Orapa, including extended maintenance downtime, and the transition of the Letlhakane Tailings Treatment Plant into care and maintenance. Production in Namibia decreased 7% to 2.1 million carats (2024: 2.2 million carats), driven by output reductions at Debmarine Namibia through the decommissioning of the Coral Sea and Grand Banks vessels, partially offset by higher-grade ore and improved recoveries at Namdeb. In South Africa, production at Venetia remained at low levels consistent with the prior year at 2.2 million carats (2024: 2.2 million carats), as the underground project progressed in line with the recently reconfigured plan. Production in Canada decreased 7% to 2.2 million carats (2024: 2.4 million carats), largely due to the planned treatment of lower-grade ore.
What factors contributed to the $2.3 billion impairment on De Beers?
An impairment of $2.3 billion (before tax and non-controlling interests) (2024: $2.9 billion) to Anglo American's carrying value of De Beers has been recognised within special items and remeasurements, driven by lower forecasted prices than previously, due to greater shifting of customer preference between natural diamonds and laboratory-grown diamonds, and surplus of available rough diamonds relative to prevailing demand.
How did unit costs and capital expenditure change in 2025?
Unit costs reduced by 8% to $86/ct, with lower rough diamond production volumes being more than offset by cost reduction initiatives across the operations. Capital expenditure decreased by 34% to $353 million (2024: $536 million), reflecting cash preservation measures with the rephasing of Venetia underground life extension and rationalisation of stay-in-business capex spend.
What were the key strategic initiatives undertaken by De Beers in 2025?
Key highlights included signing the Luanda Accord (which cements a government-industry marketing commitment for natural diamonds); launching new, large-scale natural diamond marketing campaigns in the US and India; and launching a new branded polished diamond offering, ORIGIN De Beers Group, backed by the Tracr™ traceability platform, differentiating De Beers Group's responsibly sourced diamonds at the retail level. De Beers also advanced its brand portfolio strategy during the year, with De Beers London unveiling a refreshed identity, opening new franchised stores in Dubai and Manchester and opening its Paris flagship in January 2026. Forevermark continued its evolution into a premium De Beers-owned jewellery retail brand in India, while winding down its former global licensed model.
What cost-saving achievements did De Beers report?
The business delivered on its multi-year cost reduction target, achieving over $100 million cumulative overhead cost savings through the streamlining strategy.
What is De Beers' production and cost guidance for 2026?
Production guidance for 2026 is 21–26 million carats (100% basis). De Beers continues to monitor rough diamond trading conditions in order to align output with prevailing demand. Unit cost guidance for 2026 is c.$80 per carat, lower than the 2025 unit cost of $86/ct, reflecting the benefit of slightly higher production volumes and ongoing cost-control measures.
How does De Beers describe the market outlook for natural diamonds?
Near-term trading conditions are expected to remain challenging. Continued macro-economic volatility, conservative inventory management in the midstream and laboratory-grown diamond penetration are expected to limit rough diamond demand in the near term. In the medium term, gradual normalisation of inventory levels provides a foundation for improvement. While the full differentiation of natural diamonds and laboratory-grown diamonds is expected in the medium term, it has been delayed as some retailers seek to maintain high retail margins on laboratory-grown stones despite the continued reduction in wholesale prices. Consumer demand is expected to remain stable in the US and India, particularly in the higher-end product areas, while a gradual recovery in China is expected as economic conditions stabilise.
What is the status of Anglo American's plans for De Beers?
As previously announced, Anglo American continues to pursue a dual track separation for De Beers, and a structured sale process is currently underway.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
