Outokumpu Corporation
Interim report
October 29, 2025 at 9.00 am EET
Outokumpu interim report January-September 2025 - Adjusted EBITDA was EUR 34 million in Q3, reflecting weakness in the European market
Highlights in Q3 2025
- Stainless steel deliveries were 432,000 tonnes (459,000 tonnes)*.
- Adjusted EBITDA was EUR 34 million (EUR 86 million).
- EBITDA was EUR 29 million (EUR 81 million), impacted by items affecting comparability of EUR -5 million (EUR -5 million).
- Earnings per share was EUR -0.07 (EUR 0.05).
- Free cash flow was EUR -55 million (EUR -113 million).
- ROCE was -2.7% (-7.1%).
- Net debt was EUR 230 million (June 30, 2025: EUR 169 million).
*Figures in parentheses refer to the corresponding period for 2024, unless otherwise stated.
Highlights in Q1-Q3 2025
- Stainless steel deliveries were 1,385,000 tonnes (1,371,000 tonnes)*.
- Adjusted EBITDA was EUR 157 million (EUR 180 million).
- EBITDA was EUR 115 million (EUR 174 million) impacted by items affecting comparability of EUR -42 million (EUR -6 million).
- Earnings per share was EUR -0.16 (EUR -0.02).
- Free cash flow was EUR -96 million (EUR -105 million).
- The first installment of dividend approved in Annual General Meeting for year 2024, of EUR 0.13 was paid during Q2 2025.
Strategy highlights
- On October 29, 2025, Outokumpu announced that it is proceeding with the EVOLVE strategy to enhance the production of critical carbon-free materials, such as chromium metal and enriched ferrochrome. The company invests approximately USD 45 million in a new pilot plant in New Hampshire, U.S., planned to be operational in H1 of 2027.
- On October 6, Outokumpu announced that Johann Steiner was appointed as President, business area Americas as of October 6, 2025. Previously Johann held the role of EVP, Strategy, Sustainability & People. The search for his successor is ongoing.
- On October 1, 2025, Outokumpu announced that it is proceeding with its planned restructuring program aimed at achieving structural annual cost savings of EUR 100 million by the end of 2027. The scope of the restructuring program is mainly focused on business area Europe and global group functions. The planned structural cost savings are to be achieved through fixed-cost reductions, efficiency improvements across the organization, and optimization of the production footprint. The planned measures, subject to customary local negotiations in accordance with local legislation, are expected to affect approximately 650 Outokumpu full-time positions by the end of 2027. Outokumpu anticipates recording a restructuring provision (an item affecting comparability) of approximately EUR 45 million mainly in the fourth quarter of 2025. The majority of the EUR 45 million cash flow impact is expected in 2026. This program has not impacted the company's third quarter result.
- On September 9, 2025, as part of the transformative initiatives of the EVOLVE strategy, Outokumpu announced the signing of a Memorandum of Understanding (MoU) with Boston Metal, a technology company redefining global metals production, to enhance the production of critical carbon-free materials vital for industries such as defense and aerospace.
- During the third quarter, Outokumpu improved its EBITDA run-rate by EUR 8 million, which translates into a cumulative improvement of EUR 336 million since the start of the second phase of the strategy. Improvements in the third quarter were mainly driven by business area Europe, through continued value creation from Outokumpu Circle Green® products, through the transition to district heating solutions to reduce energy costs, as well as through the insourcing of selected contractor services. In business area Americas, further savings were realized through continued process optimization in Calvert, U.S.
Key figures
| EUR million, or as indicated | Q3/25 | Q3/24 | Q2/25 | Q1-Q3/25 | Q1-Q3/24 | 2024 |
| Sales | 1,298 | 1,518 | 1,486 | 4,308 | 4,537 | 5,942 |
| EBITDA | 29 | 81 | 39 | 115 | 174 | 162 |
| Adjusted EBITDA 1) | 34 | 86 | 75 | 157 | 180 | 177 |
| Operating profit (EBIT) | -24 | 32 | -21 | -51 | 14 | -51 |
| Adjusted EBIT 1) | -19 | 31 | 21 | -2 | 15 | -43 |
| Result before taxes | -34 | 22 | -28 | -85 | -14 | -89 |
| Net result for the period | -35 | 20 | -19 | -72 | -8 | -40 |
| Earnings per share, EUR | -0.07 | 0.05 | -0.04 | -0.16 | -0.02 | -0.09 |
| Return on capital employed, rolling 12 months (ROCE), % | -2.7 | -7.1 | -1.4 | -2.7 | -7.1 | -1.2 |
| Capital expenditure | 25 | 37 | 35 | 112 | 133 | 216 |
| Free cash flow | -55 | -113 | 21 | -96 | -105 | -71 |
| Net debt | 230 | 212 | 169 | 230 | 212 | 189 |
| Stainless steel deliveries, 1000 tonnes | 432 | 459 | 483 | 1,385 | 1,371 | 1,793 |
1) Adjusted EBITDA or EBIT = EBITDA or EBIT - Items affecting comparability.
President & CEO Kati ter Horst
The underlying demand for stainless steel continues to be subdued due to low investment and manufacturing activity as well as weak consumer confidence. Furthermore, the European stainless steel market has been burdened by the high volumes of low-priced Asian imports for some time. Therefore, I am delighted to see that the European Commission has acted decisively to enhance the competitive position of the industry in its home market by proposing the implementation of more effective safeguards as part of the Steel and Metals Action Plan. The proposed measures include the reduction of import quotas by nearly half, a 50% tariff on volumes exceeding the quota, and an introduction of the melted and poured principle. These policies are set to take effect by mid-2026 at the latest and are hopefully soon approved by the European Parliament and the Member States. With better safeguards and the implementation of the Carbon Border Adjustment Mechanism (CBAM) in January 2026, we would finally move towards creating a level playing field for the European steel industry and supporting the continuation of the green transition in Europe.
In the current market environment, we continue to take our own measures to improve our cost position and performance. We have started negotiations regarding the EUR 100 million cost-reduction program across the company. The main focus is on business area Europe and group functions, but all business areas will contribute to reaching the target by the end of 2027. Unfortunately, this is expected to impact some 650 full-time positions in the company.
Further, our EBITDA run-rate improvement and short-term cost savings programs are progressing according to plan. Since 2023, we have achieved EUR 336 million EBITDA run-rate improvements towards the EUR 350 million target by the end of 2025 and our short-term costs savings total EUR 42 million at the end of the third quarter, well on track towards the EUR 60 million target by the end of this year.
In the current geopolitical environment, access to critical minerals is a strategic topic around the world. Therefore, I am excited about taking the next step in scaling up an innovative proprietary technology by investing approximately USD 45 million in a new pilot plant in New Hampshire in the U.S., to produce critical carbon-free materials, such as chromium metal and enriched ferrochrome. This is a transformative investment and an essential part of our EVOLVE growth strategy, which aims to create a path to green metals through technology and our chrome mine - the only one in the EU area.
To enhance our strategy implementation, I have made a change in the Outokumpu Leadership Team. Since October 6, Johann Steiner, previously EVP, Strategy, Sustainability & People, has been leading business area Americas. We see Americas as a geographically interesting growth market beyond standard stainless steel, and Johann's strong strategic background will offer great support to the team. The recruitment for Johann's successor is ongoing.
In Q3, our Group's adjusted EBITDA was EUR 34 million, reflecting an 11% decrease in stainless steel deliveries from the second quarter, driven by weak underlying market demand and high volumes of Asian imports into Europe.
In business area Europe, adjusted EBITDA stood at EUR -12 million, and stainless steel deliveries decreased by 12% quarter-on-quarter. The European market continued to be sluggish, as we expected, and stainless steel prices were under pressure for the whole quarter.
In business area Americas, adjusted EBITDA was EUR 30 million, and stainless steel deliveries decreased by 6% compared to the previous quarter. Prices increased during the third quarter, but we have not yet seen a pickup in industrial activity and stainless steel demand.
In business area Ferrochrome, adjusted EBITDA amounted to EUR 21 million. Demand for our European, low-emission ferrochrome has remained solid. Sales volumes were somewhat higher than in the second quarter, but the result was negatively impacted by weakened U.S. dollar and higher variable costs, especially in electricity.
After a good safety performance until end of August, I regret to say that we had a very disappointing September with a major accident in Mexinox. Our safety performance weakened compared to last year and the total recordable incident frequency rate (TRIFR) was 2.6 in the third quarter, bringing the year-to-date TRIFR to 1.9 versus our target of 1.5. We have carefully analyzed the causes of the deterioration in safety performance and we are taking prompt actions to return to our targeted level. On the positive side, we maintained our very high recycled material content level of 97% and firmly proceeded towards our SBTi climate target.
Lastly, I want to thank our employees for their dedication during these challenging times, our customers for their loyalty and confidence, our suppliers for their valuable collaboration, and our shareholders for their ongoing support.
Outlook for Q4 2025
Group stainless steel deliveries in the fourth quarter are expected to decrease by 5-15% compared to the third quarter mainly due to continued market weakness in business area Europe and seasonal slowdown in business area Americas. Asian imports to Europe still remain high compared to the low demand in the stainless steel market.
Maintenance breaks in business areas Europe and Americas as well as the rollout of a new Enterprise Resource Planning (ERP) system and supply chain solution in business area Europe, are expected to have an impact of up to EUR -20 million on adjusted EBITDA in the fourth quarter compared to the third quarter.
With the current raw material prices, no major raw material-related inventory and metal derivative gains or losses are forecasted to be realized in the fourth quarter.
Guidance for Q4 2025:
Adjusted EBITDA in the fourth quarter of 2025 is expected to be lower compared to the third quarter.
Results
Q3 2025 compared to Q3 2024
Adjusted EBITDA in the third quarter of 2025 was EUR 34 million (EUR 86 million). Total stainless steel deliveries were 6% lower compared to the previous year as deliveries decreased significantly in business area Europe due to weak market conditions, while deliveries increased in business area Americas. Realized prices for stainless steel were significantly lower in business area Europe, while prices remained stable in business area Americas. This resulted in sales of EUR 1,298 million (EUR 1,518 million).
Profitability was supported by lower raw material costs in business area Europe and Americas in addition to EUR 13 million of short-term cost-saving measures. The positive cost impact was partly offset by the decreased profitability of business area Ferrochrome. Raw material-related inventory and metal derivative gains were EUR 5 million (gains of EUR 10 million).
Adjusted EBITDA for other operations and intra-group items was EUR -5 million (EUR -8 million). The Group's EBITDA was EUR 29 million (EUR 81 million), impacted by items affecting comparability of EUR -5 million (EUR -5 million).
EBIT was EUR -24 million (EUR 32 million). ROCE for rolling 12 months was -2.7% (-7.1%). 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 -35 million (EUR 20 million) and earnings per share was EUR -0.07 (EUR 0.05). Net financial expenses were EUR 11 million (EUR 11 million) and interest expenses EUR 13 million (EUR 15 million). Income taxes was impacted by Germany enacting a corporate tax rate decrease which led to a remeasurement of the deferred tax asset of EUR -10 million of which EUR -6 million decreasing net income.
Q3 2025 compared to Q2 2025
Adjusted EBITDA in the third quarter of 2025 was EUR 34 million (Q2/2025: EUR 75 million). Total stainless steel deliveries were 11% lower compared to the previous quarter as deliveries decreased in both business areas, especially in business area Europe, due to weak market conditions and seasonality. Realized prices for stainless steel were lower in business area Europe, while increased in business area Americas. This resulted in sales of EUR 1,298 million (Q2/2025: EUR 1,486 million).
Profitability was supported by lower raw material costs and higher fixed cost absorption in business area Europe, as well as short-term cost-saving measures of EUR 13 million (Q2/2025: EUR 18 million). This was partly offset by increased maintenance costs, driven by the maintenance breaks in business area Europe. Additionally, the result was impacted by the decreased result in business area Ferrochrome, mainly due to an unfavorable EUR/USD foreign exchange rate and lower fixed cost absorption due to seasonally lower production. Raw material-related inventory and metal derivative gains were EUR 5 million (Q2/2025: gains of EUR 6 million).
Adjusted EBITDA for other operations and intra-group items was EUR -5 million (Q2/2025: EUR -3 million). The Group's EBITDA was EUR 29 million (Q2/2025: EUR 39 million), impacted by items affecting comparability of EUR -5 million (Q2/2025: EUR -35 million).
EBIT was EUR -24 million (Q2/2025: EUR -21 million). ROCE for the rolling 12 months was -2.7% (Q2/2025: -1.4%), due to weaker profitability in the third quarter. Net result was EUR -35 million (Q2/2025: EUR -19 million) and earnings per share was EUR -0.07 (Q2/2025: EUR -0.04). Net financial expenses were EUR 11 million (Q2/2025: EUR 8 million) and interest expenses EUR 13 million (Q2/2025: EUR 13 million).
Q1-Q3 2025 compared to Q1-Q3 2024
Adjusted EBITDA in January-September 2025 was EUR 157 million (EUR 180 million). Total stainless steel deliveries were 1% higher compared to the previous year as deliveries increased in business area Americas, while moderately decreased in business area Europe despite the longer strike in the comparison period, demonstrating the weakness of the market environment. Realized prices for stainless steel decreased in both business areas, especially in business area Europe. This resulted in sales of EUR 4,308 million (EUR 4,537 million).
Profitability was supported by lower raw material costs and also short-term cost-saving measures of EUR 42 million in January-September 2025. In addition, improved financial performance in business area Ferrochrome had a positive impact on the result, mainly due to lower electricity and reductant prices, and higher fixed cost absorption. Raw material-related inventory and metal derivative gains were EUR 11 million in January-September 2025 (losses of EUR 2 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 -19 million (EUR -34 million). The Group's EBITDA was EUR 115 million (EUR 174 million), impacted by items affecting comparability of EUR -42 million (EUR -6 million), which are mainly related to the restructuring provision in relation to the EVOLVE strategy, which was recognized in Q2.
EBIT was EUR -51 million (EUR 14 million). ROCE for the rolling 12 months was -2.7% (-7.1%). 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 -72 million (EUR -8 million) and earnings per share was EUR -0.16 (EUR -0.02). Net financial expenses were EUR 36 million (EUR 30 million) and interest expenses EUR 43 million (EUR 48 million).
Adjusted EBITDA by segment
| EUR million | Q3/25 | Q3/24 | Q2/25 | Q1-Q3/25 | Q1-Q3/24 | 2024 |
| Europe | -12 | 59 | 16 | 10 | 91 | 58 |
| Americas | 30 | 5 | 29 | 70 | 49 | 59 |
| Ferrochrome | 21 | 29 | 32 | 96 | 73 | 106 |
| Other operations and intra-group items | -5 | -8 | -3 | -19 | -34 | -46 |
| Total adjusted EBITDA | 34 | 86 | 75 | 157 | 180 | 177 |
Items affecting comparability in EBITDA
| EUR million | Q3/25 | Q3/24 | Q2/25 | Q1-Q3/25 | Q1-Q3/24 | 2024 |
| Europe | -1 | -4 | -33 | -36 | -2 | -3 |
| Americas | -4 | - | -2 | -6 | - | -8 |
| Other operations | - | 0 | - | - | -4 | -4 |
| Total items affecting comparability in EBITDA | -5 | -5 | -35 | -42 | -6 | -15 |
| Total EBITDA | 29 | 81 | 39 | 115 | 174 | 162 |
A live webcast and conference call today, October 29, at 2.30pm EET
A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 2.30 pm EET at https://outokumpu.events.inderes.com/q3-2025 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/q3-2025/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