EQS-News: Salzgitter Group achieves a marginally positive pre-tax result in the third quarter

• In the first nine months, P28 profit improvement program delivers additional earnings contribution of € 89 million in a year-on-year comparison; annual target almost reached
• Sustained sound performance of the Technology Business Unit and contribution from the participating investment in Aurubis AG bolster the result; turnaround in the Trading Business Unit
• Sales and earnings forecast for the financial year 2025 in line with analyst expectations – in the lower half of the previous forecast range
• Potential for improving earnings performance in 2026 underpinned by own programs, measures anticipated in trade policies and economic recovery

In a challenging market environment characterized by persistent geopolitical uncertainty and a stagnating economy in its domestic market, the Salzgitter Group generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 224.0 million and a pretax result of € – 72.7 million in the first nine months of the financial year 2025. Along with Aurubis AG’s contribution and the consistently good performance of the KHS Group, the effects of the profit improvement programs had a positive impact on earnings and were reflected in the marginally positive result for the third quarter. The Trading Business Unit maintained the turnaround initiated in the second quarter thanks to cost adjustments and restructuring measures, while the Steel Production Business Unit delivered a quarterly result at breakeven. Import volumes continuing to run at a high level, compounded by fierce pressure in the competitive arena due to the ongoing use of cut-rate, cheap Russian slab in the EU, burdened the heavy plate companies in the Steel Processing Business Unit.

In the first nine months of the current financial year, the Salzgitter Group recorded external sales of € 6.9 billion (9M 2024: € 7.7 billion), EBITDA of € 224.0 million (9M 2024: € 320.6 million) and a pretax result of € – 72.7 million (9M 2024: € – 141.2 million). The result includes an after-tax contribution of € 83.5 million from Aurubis AG, an investment (IFRS accounting) included at equity (9M 2024: € 107.6 million). The following is also included in the result: € – 68.2 million in burdens from the reporting-date related valuation of derivative positions (9M 2024: € – 19.1 million), as well as non-recurrent items of € – 5.4 million for reducing the carrying amounts with effect on income of KDS’s assets held for sale in accordance with current purchase price expectations. The after-tax result came in at € – 46.5 million (9M 2024: € – 197.7 million), bringing earnings per share to € – 0.93 (9M 2024: € – 3.74). The return on capital employed (ROCE) stood at – 0.4 % (9M 2024: – 1.6 %). The equity ratio remained at a very sound 41.8 % (9M 2024: 43.3 %).

As Chief Financial Officer Birgit Potrafki comments in explanation: 

“Framework conditions have hardly improved at all since the start of the year. We are therefore pressing ahead with our own countermeasures. Over the first nine months of the year, our P28 performance program has enabled us to generate an additional € 89 million in earnings contributions. We were therefore very close to reaching our annual target of € 97 million. This achievement is reflected in the marginally positive quarterly result.

The exchangeable bond issued in October in a volume of € 500 million serves to strengthen our financing structure. The gratifying response reflects the capital market’s trust in our strategy.

With 2026 in mind, we will continue to forge ahead with our own earnings measures. Furthermore, the new trade instruments recently presented by the EU Commission harbor potential for reinforcing the European steel industry’s competitiveness. Should the economic recovery anticipated next year also materialize, we anticipate an improvement in earnings all-in-all.”

External sales by business unit (EUR million):

EBITDA by business unit (EUR million):

Earnings before taxes (EBT) by business unit (EUR million):

Outlook

Given the persistently weak economic phase, margins are set to remain under pressure throughout 2025 as a whole. Although there were signs recently of prices trending up moderately, it is likely to be next year before the resulting positive effects are reflected in sales and earnings. Against this backdrop, we are specifying our guidance for the year. In accordance with analysts’ estimates, we anticipate the following for the Salzgitter Group in the financial year 2025:

• sales slightly above € 9.0 billion (previously: between € 9.0 billion and € 9.5 billion),
• EBITDA of between € 300 million and € 350 million (previously: between € 300 million and € 400 million),
• a pre-tax result of between € – 100 million and € – 50 million (previously: between € – 100 million and € 0 million),
• a return on capital employed (ROCE) slightly above the year-earlier figure.

We make reference to the fact that criteria of the annual financial statements and opportunities and risks, including changes in the cost of raw materials, precious metal prices and exchange rates, along with the valuation of the exchangeable bond issued in October 2025, may still have a considerable impact on the end of the financial year 2025.

The complete report released on the results of the first nine months of 2025 can be viewed at: https://www.salzgitter-ag.com/en/investor-relations/news-publikationen.html.