The first quarter
- Revenue was SEK 25,523 (27,148) million
- Operating result was SEK 1,351 (3,157) million
- Earnings per share were SEK 1.13 (2.57)
- Net cash was SEK 14.4 (18.2) billion
Comments by the CEO
SSAB's operating result for the first quarter of 2025 amounted to SEK 1,351 (3,157) million. The result reflected weak market conditions in general and the decrease compared to last year was mainly related to lower prices in North America. The operating result increased compared to previous quarter, supported by a solid level of shipments of SSAB's high-strength steels and other premium products. Market prices in North America recovered compared to the fourth quarter last year, which will gradually have a positive effect on SSAB Americas result the next quarter.
SSAB Special Steels reported an operating result of SEK 1,442 (1,781) million and an operating margin of 20% (23%) during the quarter. High-strength steel provides significant added value for our customers and this in turn translates into more stable prices than for standard products over the business cycle. During the quarter, SSAB decided to invest in SSAB Special Steels' facility in Mobile, Alabama to increase the capacity of the most advanced products. SSAB Americas reported a lower operating result of SEK 160 (1,412) million with an operating margin of 3% (23%). SSAB Europe's operating result was SEK 33 (163) million and the operating margin was 0% (2%).
The US market saw a recovery during the first quarter and heavy plate prices increased from the low levels seen during the end of 2024. The European market was still weak but saw a seasonal recovery. However, the turbulence driven by trade barriers and tariffs has created uncertainty and represents a significant risk of a lower economic activity. There was no impact on SSAB from the US tariffs during the quarter. SSAB benefits from having production facilities close to major customers both in Europe and the USA, and our flexible production system enables efficient delivery of special steels to export markets.
The transformation of Luleå and the conversion of Oxelösund are proceeding according to plan. The rationale of the projects is to lower cost, improve the product mix and largely remove CO2 emissions. The transformation will shorten lead times, strengthen our ability to manage short-term swings in demand and we can use a flexible mix of raw materials. The investment in Luleå starting up this year comprises advanced metallurgy, a new hot rolling mill and a cold rolling complex to increase production volumes of premium products. An Early Service Agreement was recently signed with SMS group for the new cold rolling complex.
We have the flexibility to carry out the transformation in a robust way, taking into account our financial capacity, customer demand and the overall market situation. At the end of April, SSAB secured up to EUR 2.3 billion of financing backed by the Swedish National Debt Office, the Italian Export Credit Agency and the Nordic Investment Bank. The financing was secured on favorable terms, with strong interest from participating institutions.
Safety performance continued to improve through SSAB's long-term and systematic work. LTIF decreased to 0.67 (0.81) during the quarter.
SSAB invites you to a presentation of the Q1 2025 report at 9.30am CEST on Tuesday, April 29, 2025.
The report will be presented by SSAB's President and CEO Johnny Sjöström, and CFO Leena Craelius.
The press conference will be held in English and live webcast on SSAB's website www.ssab.com.
Link to webcast: https://edge.media-server.com/mmc/p/urbpip7e
You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can choose if you want to dial in or click "Call Me" for a call-back.
Link to teleconference: https://register-conf.media-server.com/register/BIa0b3572889964403af9370719ea8d2e6
For further information, please contact:
Helena Norrman, EVP and Head of Group Communications, Helena.norrman@ssab.com, phone: +46 730 66 53 46
Per Hillström, Head of Investor Relations, per.hillstrom@ssab.com, phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
viktoria.karsberg@ssab.com, phone: +46 72 233 5288
This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CET on April 29, 2025.
SSAB is a Nordic and US-based steel company that builds a stronger, lighter and more sustainable world through value added steel products and services. Working with our partners, SSAB has developed SSAB Fossil-free steel and plans to reinvent the value chain from the mine to the end customer, largely eliminating carbon dioxide emissions from our own operations. SSAB Zero, a largely carbon emission-free steel based on recycled steel, further strengthens SSAB's leadership position and our comprehensive, sustainable offering independent of the raw material. SSAB has employees in over 50 countries and production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. Join us on our journey! www.ssab.com, Facebook, Instagram, LinkedIn, X and YouTube.
