Outokumpu Corporation
Half-year report
July 30, 2026 at 9.00 am EEST
Outokumpu half-year report January-June 2026 - Improved profitability while progressing on EVOLVE growth strategy
Highlights in Q2 2026
- Adjusted EBITDA increased from the previous quarter to EUR 100 million, mainly driven by improvement in business area Europe, while strong performance in business area Americas continued and performance in business area Ferrochrome further improved.
- Stainless steel deliveries increased by 5% from the previous quarter. Demand was supported by regional policy measures in Europe, while end-use demand improved only in some industrial segments. In the US, demand remained good, supported by improved activity in several industrial segments.
- Demand for Outokumpu's low-emission European ferrochrome remained robust, and deliveries rose 4% from the previous quarter.
- Operating cash flow remained solid at EUR 85 million compared to the previous quarter. Net debt decreased to EUR 224 million despite payment of the first dividend installment of EUR 28 million.
- EUR 100 million restructuring program is progressing as planned, with approximately half of the savings expected in 2026.
- EVOLVE growth strategy progressing:
- Building on the existing Advanced Materials business, Outokumpu has decided to start an investment program in high-nickel alloys, a segment offering attractive global growth, higher margins and resilience. The investment program is planned to be implemented in two phases at the Avesta site in Sweden to accelerate market entry and improve returns.
- The scale-up of proprietary technology to produce low-CO2 enriched ferrochrome and chromium metal is advancing, with the first patent applications covering key process elements published in July. The technology development initiative is evolving into a future-oriented business platform for growth.
- Continued to expand the product portfolio toward higher-margin ferrochrome products to serve new customer segments, such as special steel producers.
| Key figures (EUR million, or as indicated) | Q2/26 | Q2/25 | Q1/26 | Q1-Q2/26 | Q1-Q2/25 | 2025 |
| Sales | 1,582 | 1,486 | 1,451 | 3,033 | 3,010 | 5,468 |
| EBITDA | 94 | 39 | 59 | 152 | 86 | 88 |
| Adjusted EBITDA 1) | 100 | 75 | 65 | 164 | 124 | 167 |
| Operating profit (EBIT) | 38 | -21 | 3 | 41 | -28 | -134 |
| Net result for the period | 25 | -19 | -6 | 18 | -37 | -137 |
| Earnings per share, EUR | 0.05 | -0.04 | -0.01 | 0.04 | -0.09 | -0.31 |
| Operating cash flow | 85 | 52 | 85 | 170 | 42 | 79 |
| Net debt | 224 | 169 | 241 | 224 | 169 | 265 |
| Net debt to adjusted EBITDA | 1.1 | 0.8 | 1.3 | 1.1 | 0.8 | 1.6 |
| Stainless steel deliveries, 1000 tonnes | 488 | 483 | 465 | 953 | 953 | 1,751 |
| Ferrochrome deliveries, 1000 tonnes | 114 | 101 | 110 | 224 | 197 | 395 |
- Adjusted EBITDA = EBITDA - Items affecting comparability.
President & CEO Kati ter Horst
In the second quarter, European stainless steel demand remained broadly unchanged. Market dynamics were supported by the Carbon Boarder Adjustment Mechanism (CBAM) and the steel safeguard measures that came into force on July 1, 2026. Further, the European Commission is currently reviewing the EU Emissions Trading System (EU ETS) for the period 2031-2040. The proposal, published on July 17, 2026, maintains the EU ETS as the core mechanism to price emissions and drive investments in cleaner technologies. The proposal also introduces adjustments to elements such as the trajectory of free emission allowances and the Linear Reduction Factor (LRF). Outokumpu highlights that it is essential to preserve a strong and predictable carbon pricing framework that rewards investments in industrial decarbonization while ensuring a level playing field for low-carbon production.
In the US, underlying market demand has been more robust, especially in industrial end-use segments like data centers and energy. The Mexican market also showed further signs of improvement. As I am writing this, the USMCA negotiations continue with the third round between the U.S. and Mexico.
In the ferrochrome market, charge chrome producers in South Africa have reached an agreement on electricity price support. The production is expected to be ramped up towards the end of the year, and such subsidized production could impact the supply and demand balance of the market. We remain confident in the robust demand for our low-emission European ferrochrome. At the same time, we continue to expand our ferrochrome product portfolio into specialty grades.
The conflict in the Middle East is adding to market uncertainty, weighing on economic growth and driving up energy and freight costs. The direct impact on Outokumpu's second quarter result has been limited, mainly related to higher freight costs.
In Q2, our adjusted EBITDA increased to EUR 100 million from EUR 65 million in Q1, mainly driven by improvement in business area Europe, while strong performance in business area Americas continued and performance in business area Ferrochrome further improved. Our financial position remained strong, and net debt decreased to EUR 224 million.
Our EVOLVE growth strategy is progressing. We are now starting the investment program in our Advanced Materials business to expand to high-nickel alloys, which provide attractive global growth, higher margins and resilience. We have decided to execute this investment at our Avesta production plant in two phases as it accelerates time to market and improves the investment case to reach an internal rate of return above the set 20% hurdle rate for transformative investments. In the first phase, we will invest EUR 30 million to install an electro slag remelting unit in the current melt shop, optimize the process and conduct a detailed engineering study for the second phase to confirm the total capex estimate of EUR 150 million. The second phase would include a greenfield investment in new melting and casting capabilities to further expand our high-nickel alloy product portfolio.
We also continue to advance the scale-up of our proprietary technology to produce low-CO2 enriched ferrochrome and chromium metal. What began as a focused technology development initiative is now evolving into a future-oriented business platform for growth. Led by our technology organization, the recent publication of the first patent applications covering key process elements marks an important milestone in this journey.
Outokumpu is the global sustainability leader in stainless steel. During the second quarter, Outokumpu was recognized by TIME and Statista in the World's Most Sustainable Companies ranking. On safety, Outokumpu works every day towards zero incidents. In Q2, the total recordable incident frequency rate (TRIFR) improved to 1.4, while for the first half of the year it was 1.6, close to our full year target level of 1.5.
As always, I want to thank our employees for their dedication and drive to advance our strategic goals, our customers for their loyalty and business, our suppliers for their valuable collaboration, and our shareholders for their continued confidence in us.
Outlook for Q3 2026
Group stainless steel deliveries in the third quarter are expected to decrease by 0-10% compared to the second quarter due to seasonality in business area Europe.
Based on the current order book, the net impact of realized prices and raw material costs is expected to be positive.
With current raw material prices, some raw material-related inventory and metal derivative gains are forecasted for the third quarter.
Guidance for Q3 2026
Adjusted EBITDA in the third quarter of 2026 is expected to be on a similar level compared to the second quarter of 2026.
A live webcast and conference call today, July 30, 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/q2-2026 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/q2-2026/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 result materials, a link to the webcast and later its recording will be available at www.outokumpu.com/en/investors.
For more information:
Investors: Johan Lindh,?VP, Investor Relations, tel. +358 40 837 3994
Media: Päivi Allenius, SVP, Communications and Public Affairs, tel. +358 40 753 7374, or Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com
Outokumpu Corporation
Outokumpu's vision is to pioneer materials and technologies that power tomorrow. As the global leader in sustainable stainless steel, we are accelerating the green transition, and we lead the development of low-CO2 metals and solutions across the stainless steel value chain - and beyond.
Our business is based on the circular economy: our products are made from more than 90% recycled materials, which we turn into fully recyclable stainless steel with up to 75% lower carbon footprint than the industry average. This steel is utilized in various applications across society, including infrastructure, energy, industrial applications and household appliances. With our new EVOLVE strategy, we focus on maximizing value in sustainable stainless steel while expanding our offering in advanced materials & alloys, ferrochrome and innovative technologies.
We operate production sites in Finland, Germany, Sweden, the Netherlands, the United States, and Mexico whilst our mine in Kemi, Finland is the only chrome mine within the European Union.
In 2025, Outokumpu's revenue was EUR 5.5 billion. Outokumpu employs approximately 8,600 professionals in nearly 30 countries, with headquarters in Helsinki, Finland. Our shares are listed on Nasdaq Helsinki. Read more: www.outokumpu.com
