De Beers Group has reported a significant financial setback for the first half of 2025, posting an EBITDA loss of $289 million, as the global diamond industry continues to grapple with soft demand, high inventory levels, and price pressures.
According to the company’s interim financial results released on July 31, 2025, revenue fell to $2.0 billion from $2.2 billion during the same period in 2024, reflecting a subdued diamond market that has weighed heavily on both sales volumes and prices.
The average realised price per carat dropped to $155, down from $264 in the first half of 2024, marking a steep 41% decline. The sharp drop in prices comes despite De Beers reducing production levels to 13.3 million carats from 16.5 million carats in the prior-year period.
Operating costs have remained relatively flat, with unit costs at $87 per carat compared to $85 per carat in 2024, further eroding margins amid falling revenues. Capital expenditure during the period stood at $172 million, down from $300 million last year, reflecting a more cautious investment stance under current market conditions.
The results highlight the extent to which De Beers, a 50-50 joint venture between Anglo American and the Government of Botswana, is being squeezed by a weakened luxury market in China and slower-than-expected recovery in the US. The diamond industry has also faced increased competition from lab-grown diamonds, which continue to gain market share due to their affordability and environmental positioning.
In response to the downturn, De Beers has focused on inventory management and flexible sales strategies, while pushing forward its “Building Forever” sustainability commitments. However, the outlook remains uncertain, with the company warning of continued volatility in the short term.
Botswana, which relies heavily on diamond revenues to support its economy, will be closely monitoring De Beers’ performance. The country recently renegotiated its sales agreement with the mining giant, aiming for increased access to rough diamonds through the state-owned Okavango Diamond Company (ODC) and more beneficiation opportunities.
De Beers executives, including CEO Al Cook and Sales Director Paul Rowley, have previously indicated that the long-term fundamentals of the diamond industry remain strong, citing generational shifts and increasing demand from emerging markets. However, the current downturn suggests the road to recovery could be longer and more complex than anticipated.
The company’s next sales cycle and second-half performance will be critical in determining whether the diamond market stabilizes or continues its slide.
