Outokumpu Corporation
Half-year report
July 31, 2025 at 9.00 am EEST
Outokumpu half-year report January-June 2025 - Adjusted EBITDA increased to EUR 75 million from the first quarter, balance sheet strengthened
Highlights in Q2 2025
- Stainless steel deliveries were 483,000 tonnes (468,000 tonnes)*.
- Adjusted EBITDA was EUR 75 million (EUR 56 million).
- EBITDA was EUR 39 million (EUR 56 million), impacted by items affecting comparability of EUR -35 million (EUR 0 million).
- Earnings per share was EUR -0.04 (EUR -0.01).
- Free cash flow was EUR 21 million (EUR 35 million).
- ROCE was -1.4% (-8.7%).
- Net debt was EUR 169 million (March 31, 2025: EUR 252 million).
- The first installment of dividend approved in Annual General Meeting for year 2024, of EUR 0.13 was paid during Q2 2025.
*Figures in parentheses refer to the corresponding period for 2024, unless otherwise stated.
Highlights in Q1-Q2 2025
- Stainless steel deliveries were 953,000 tonnes (912,000 tonnes)*.
- Adjusted EBITDA was EUR 124 million (EUR 94 million).
- EBITDA was EUR 86 million (EUR 93 million)
- Earnings per share was EUR -0.09 (EUR -0.07).
- Free cash flow was EUR -41 million (EUR 9 million).
Strategy highlights
- In June 2025, Outokumpu announced EVOLVE, its new strategy, to drive growth and shareholder value for 2026-2030 by classifying businesses for investment allocation as either foundational or transformative.
- Value is created by driving cost competitiveness and cash generation in sustainable stainless steel, growing profitably in advanced materials and alloys, and revolutionizing value creation through innovative materials and technologies.
- As foundational initiative, Outokumpu plans to invest approximately EUR 200 million in a new annealing and pickling line in Tornio, Finland. At the same time, it intends to close two less competitive lines in Krefeld, Germany. Once the new line is operational, this set-up would generate annual EBITDA improvements in a magnitude of EUR 70 million through the cycle.
- As transformative initiative, Outokumpu has started a feasibility study to assess a potential investment in its melt shop in Avesta, Sweden to enable further expansion into high-nickel alloys.
- As transformative initiative, Outokumpu is capitalizing on proprietary technology to produce low-CO2 metals and its own Kemi chrome mine offers the ideal launchpad. The company aims to establish a platform for premium products, first focusing on chromium materials, including enriched ferrochrome and high-purity chromium metal.
- During the second quarter, Outokumpu improved its EBITDA run-rate by EUR 15 million, which translates into a cumulative improvement of EUR 328 million since the start of the second phase of the strategy.
- EBITDA run-rate improvements in the second quarter were mainly driven by business area Americas, through continued optimization of its route to market and further yield improvements. In business area Europe, additional actions were taken to support more efficient scrap utilization.
Key figures
| EUR million, or as indicated | Q2/25 | Q2/24 | Q1/25 | Q1-Q2/25 | Q1-Q2/24 | 2024 |
| Sales | 1,486 | 1,540 | 1,524 | 3,010 | 3,019 | 5,942 |
| EBITDA | 39 | 56 | 47 | 86 | 93 | 162 |
| Adjusted EBITDA 1) | 75 | 56 | 49 | 124 | 94 | 177 |
| Operating profit (EBIT) | -21 | 1 | -7 | -28 | -18 | -51 |
| Adjusted EBIT 1) | 21 | 1 | -5 | 17 | -16 | -43 |
| Result before taxes | -28 | -7 | -23 | -51 | -36 | -89 |
| Net result for the period | -19 | -5 | -18 | -37 | -28 | -40 |
| Earnings per share, EUR | -0.04 | -0.01 | -0.04 | -0.09 | -0.07 | -0.09 |
| Return on capital employed, rolling 12 months (ROCE), % | -1.4 | -8.7 | -0.8 | -1.4 | -8.7 | -1.2 |
| Capital expenditure | 35 | 37 | 52 | 86 | 96 | 216 |
| Free cash flow | 21 | 35 | -62 | -41 | 9 | -71 |
| Net debt | 169 | 97 | 252 | 169 | 97 | 189 |
| Stainless steel deliveries, 1000 tonnes | 483 | 468 | 470 | 953 | 912 | 1,793 |
1) Adjusted EBITDA or EBIT = EBITDA or EBIT - Items affecting comparability.
President & CEO Kati ter Horst
As I write these comments, the EU and the U.S have just reached a trade agreement. This at least takes away some of the uncertainty and hopefully supports a better investment climate and boosts industrial production. For now, U.S. tariffs on European steel remain at 50%, and it is unclear how these discussions might continue.
In Europe, the stainless steel industry faces persistent challenges, including subdued demand, low-priced imports from Asia, and elevated energy costs. It is imperative that we intensify efforts to create a level playing field for European producers. With U.S. tariffs on imported steel currently at 50%, the European Commission must act with urgency to implement more effective safeguard measures against Asian imports and to ensure that the Carbon Border Adjustment Mechanism (CBAM) is robust and enforceable from its launch in early 2026. In parallel, we must accelerate the development of European lead markets for sustainable stainless steel. In summary, the importance of implementing the Steel and Metals Action Plan is growing by the day.
Access to critical minerals is a big topic in both Europe and the Americas. Our chrome mine in Finland - the only one in the EU - gives us a unique position in this landscape. Despite weak market sentiment, we are seeing growing demand for our sustainable ferrochrome, driven by geopolitical shifts. We have also secured access to other important metals, such as nickel and molybdenum, which are key raw materials in stainless steel production.
In the second quarter, we introduced EVOLVE, our new growth-focused strategy for the years 2026-2030. With this strategy, we are sharpening our strategy execution and investment allocation by classifying our businesses as either foundational or transformative. This approach clarifies the strategic role and priorities of each business, supporting long-term value creation and total shareholder returns.
While we continue to drive cost competitiveness and cash generation in sustainable stainless steel, we plan to grow through transformative investments in higher-growth, higher-margin, and less cyclical markets. We are currently conducting a feasibility study in Avesta, Sweden to explore opportunities in high-nickel alloys. During our Capital Markets Day in June, we also discussed our proprietary technology development that could revolutionize metal extraction methods.
During the second quarter, we continued to benefit from our strong market positions in both Europe and the U.S. However, the quarter was marked by uncertainty and heightened geopolitical tensions, leading to increased caution among our customers and across the value chain. Still, we were able to strengthen our balance sheet.
Our adjusted EBITDA reached EUR 75 million, while our stainless steel deliveries increased by 3% compared to the first quarter. The result was supported by our successful short-term cost-saving measures, which so far have delivered EUR 29 million of the targeted EUR 50 million in savings for 2025. We also made progress with our structural EBITDA run-rate improvement program, which now stands at a cumulative achievement of EUR 328 million compared to the target of EUR 350 million by the end of this year.
In business area Europe, adjusted EBITDA increased to EUR 16 million, and stainless steel deliveries were 2% higher compared to the previous quarter. The European market remained sluggish, and stainless steel prices were under pressure.
In business area Americas, adjusted EBITDA improved to EUR 29 million, and stainless steel deliveries increased by 7% quarter-on-quarter due to higher demand for domestically produced stainless steel.
In business area Ferrochrome, adjusted EBITDA was EUR 32 million. Demand for our European low-emission ferrochrome has remained solid, and we continue to benefit from energy optimization in Finland.
Looking ahead, it is evident that we need to accelerate the pace of change at Outokumpu to adapt more quickly to the market environment, especially in Europe. We have increased our short-term cost-saving measures from EUR 50 million to EUR 60 million, to be achieved by the end of 2025. In addition, we have started to plan a new restructuring program, aiming at structural annual cost-savings of EUR 100 million to be achieved by the end of 2027.
I am delighted that our safety performance is again back on track, with a TRIFR of 1.2 in the second quarter. We also maintained our very high recycled material content level of 97% and continued to make firm progress toward our SBTi climate target.
Finally, I would like to thank our employees for their commitment and achievements, our customers for their business and trust, our suppliers for their cooperation, and our shareholders for their continued support.
Outlook for Q3 2025
Group stainless steel deliveries in the third quarter are expected to decrease by 5-15% compared to the second quarter, mainly in business area Europe, due to seasonality and market weakness. Meanwhile, pressure on realized stainless steel prices is expected to continue in Europe during the third quarter. Asian imports to Europe remain high compared to the low demand in the stainless steel market.
While in the U.S. we do not see signs of a demand recovery yet, the current tariffs are supporting more favorable market conditions for local producers.
Maintenance breaks in business area Europe are expected to have an impact of up to EUR -10 million on adjusted EBITDA in the third quarter compared to the second quarter.
With the current raw material prices, some raw material-related inventory and metal derivative losses are forecasted to be realized in the third quarter.
Guidance for Q3 2025:
Adjusted EBITDA in the third quarter of 2025 is expected to be lower compared to the second quarter.
Results
Q2 2025 compared to Q2 2024
Adjusted EBITDA in the second quarter of 2025 was EUR 75 million (EUR 56 million). Total stainless steel deliveries were 3% higher compared to the previous year as deliveries increased moderately in both business area Europe and business area Americas, while realized prices for stainless steel were notably lower. This resulted in sales of EUR 1,486 million (EUR 1,540 million).
Profitability was supported by notably lower raw material costs and EUR 18 million of short-term cost-saving measures, partly offset by higher fixed costs, mainly driven by lower fixed cost absorption in business area Europe. In addition, the improved performance of business area Ferrochrome was one of the drivers for the improvement in Group profitability. Raw material-related inventory and metal derivative gains were EUR 6 million (losses of EUR 8 million).
The comparison period was affected by the political strike in Finland with an impact of approximately EUR -30 million. The strike also impacted indirectly the company's operations in other countries through the disruption to internal material flows in business areas Europe and Americas.
Adjusted EBITDA for other operations and intra-group items was EUR -3 million (EUR -15 million). The Group's EBITDA was EUR 39 million (EUR 56 million), impacted by items affecting comparability of EUR -35 million (EUR 0 million) which were mainly related to the restructuring provision in relation to strategy, EVOLVE. The cash flow impact in relation to the provision is approximately EUR 29 million for years 2025-2028.
EBIT was EUR -21 million (EUR 1 million). ROCE for rolling 12 months was -1.4% (-8.7%). The comparison period for ROCE was affected by the significant impairment recording related to the renegotiated hot rolling contract in business area Americas at the end of 2023. Net result was EUR -19 million (EUR -5 million) and earnings per share was EUR -0.04 (EUR -0.01). Net financial expenses were EUR 8 million (EUR 9 million) and interest expenses EUR 13 million (EUR 16 million). The change in net financial expenses were mainly impacted by interest income, foreign exchange rates, and the positive impact of convertible bond conversions on interest expenses.
Q2 2025 compared to Q1 2025
Adjusted EBITDA in the second quarter of 2025 was EUR 75 million (Q1/2025: EUR 49 million). Total stainless steel deliveries were 3% higher compared to the previous quarter as deliveries increased moderately in both business area Europe and business area Americas. Realized prices for stainless steel were notably lower in business area Europe, while increased slightly in business area Americas. This resulted in sales of EUR 1,486 million (Q1/2025: EUR 1,524 million).
Profitability was supported by lower raw material costs in both business area Europe and business area Americas, short-term cost saving measures of EUR 18 million (Q1/2025: EUR 11 million) and lower energy costs. Profitability was impacted by lower result in business area Ferrochrome and increased fixed costs, mainly driven by higher maintenance costs. The comparison period Q1 2025 was affected by the one-week union strike in Finland with an impact of approximately EUR -15 million. Raw material-related inventory and metal derivative gains were EUR 6 million (Q1/2025: gains of EUR 0 million).
Adjusted EBITDA for other operations and intra-group items was EUR -3 million (Q1/2025: EUR -11 million). The Group's EBITDA was EUR 39 million (Q1/2025: EUR 47 million), impacted by items affecting comparability of EUR -35 million (Q1/2025: EUR -2 million), which were mainly related to restructuring provision in relation to strategy, EVOLVE.
EBIT was EUR -21 million (Q1/2025: EUR -7 million). ROCE for the rolling 12 months was -1.4% (Q1/2025: -0.8%), as the profitability in the last 12-month remained relatively stable. Net result was EUR -19 million (Q1/2025: EUR -18 million) and earnings per share was EUR -0.04 (Q1/2025: EUR -0.04). Net financial expenses were EUR 8 million (Q1/2025: EUR 17 million) and interest expenses EUR 13 million (Q1/2025: EUR 16 million). The change in net financial expenses were mainly impacted by interest income, foreign exchange rates, and the positive impact of convertible bond conversions on interest expenses.
Q1-Q2 2025 compared to Q1-Q2 2024
Adjusted EBITDA in January-June 2025 was EUR 124 million (EUR 94 million). Total stainless steel deliveries were 4% higher compared to the previous year as deliveries increased in both business area Europe and business area Americas. Realized prices for stainless steel decreased notably in both business area Europe and business area Americas. This resulted in sales of EUR 3,010 million (EUR 3,019 million).
Profitability was supported by lower raw material costs, and short-term cost saving measures of EUR 29 million during the first half of 2025. Additionally, significantly improved performance in business area Ferrochrome had a positive impact on the result. Raw material-related inventory and metal derivative gains were EUR 6 million in January-June 2025 (losses of EUR 12 million).
The impact of the union strike in Finland was approximately EUR -15 million in the first half of 2025, as local operations were down for one week in January. In comparison, the first half of 2024 was affected by the four-week political strike in Finland with an impact of approximately EUR -60 million. The strike also impacted indirectly the company's operations in other countries through the disruption to internal material flows in business areas Europe and Americas.
Adjusted EBITDA for other operations and intra-group items was EUR -14 million (EUR -26 million). The Group's EBITDA was EUR 86 million (EUR 93 million), impacted by items affecting comparability of EUR -37 million (EUR -2 million), which are mainly related to the restructuring provision in relation to strategy, EVOLVE.
EBIT was EUR -28 million (EUR -18 million). ROCE for the rolling 12 months was -1.4% (-8.7%). ROCE in the previous year was affected by the significant impairment booking related to the renegotiated hot rolling contract in business area Americas at the end of 2023. Net result was EUR -37 million (EUR -28 million) and earnings per share was EUR -0.09 (EUR -0.07). Net financial expenses were EUR 25 million (EUR 20 million) and interest expenses EUR 29 million (EUR 32 million).
Adjusted EBITDA by segment
| EUR million | Q2/25 | Q2/24 | Q1/25 | Q1-Q2/25 | Q1-Q2/24 | 2024 |
| Europe | 16 | 28 | 6 | 22 | 32 | 58 |
| Americas | 29 | 21 | 11 | 41 | 44 | 59 |
| Ferrochrome | 32 | 22 | 43 | 75 | 44 | 106 |
| Other operations and intra-group items | -3 | -15 | -11 | -14 | -26 | -46 |
| Total adjusted EBITDA | 75 | 56 | 49 | 124 | 94 | 177 |
Items affecting comparability in EBITDA
| EUR million | Q2/25 | Q2/24 | Q1/25 | Q1-Q2/25 | Q1-Q2/24 | 2024 |
| Europe | -33 | 0 | -2 | -35 | 2 | -3 |
| Americas | -2 | - | 0 | -3 | - | -8 |
| Other operations | - | 0 | - | - | -4 | -4 |
| Total items affecting comparability in EBITDA | -35 | 0 | -2 | -37 | -2 | -15 |
| Total EBITDA | 39 | 56 | 47 | 86 | 93 | 162 |
A live webcast and conference call today, July 31, at 2.30pm EEST
A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 2.30 pm EEST at https://outokumpu.events.inderes.com/q2-2025/register hosted by President and CEO Kati ter Horst and CFO Marc-Simon Schaar.
To ask questions, please participate in the conference call by registering at https://events.inderes.com/outokumpu/q2-2025/dial-in. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.
All the interim report materials, a link to the webcast and later its recording will be available at www.outokumpu.com/en/investors.
For more information:
Investors: Ulla Paajanen, SVP, IR and Strategic Advisory, tel. +358 40 763 8767?
Media: Päivi Allenius, SVP - Communications and Brand, tel. +358 40 753 7374, or Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com
Outokumpu Corporation
Outokumpu is accelerating the green transition as the global leader in sustainable stainless steel. Our business is based on the circular economy: our products are made from 95% recycled materials, which we then turn into fully recyclable stainless steel. This steel is utilized in various applications across society, including infrastructure, mobility, and household appliances. We are committed to 1.5°C target to mitigate climate change, and with up to 75% lower carbon footprint than the industry average, we support our customers to reduce their emissions. Together, we are working towards a world that lasts forever. Outokumpu Corporation employs approximately 8,700 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. Read more: www.outokumpu.com
