Salzgitter AG delivers a pre-tax result close to breakeven

• Result includes around € 23 million in charges from the reporting-date-related valuation of derivative positions and € 10 million in impairment risk from planned portfolio streamlining
• € 78.6 million in earnings before interest, taxes, depreciation and amortization (EBITDA)
• P28 performance program generates an additional € 14 million contribution to earnings in the first quarter
• Guidance confirmed

In the first quarter of the financial year 2025 that was characterized by marked geopolitical and trade policy volatility and persistently weak economic momentum, the Salzgitter Group reported earnings before interest, taxes, depreciation and amortization (EBITDA) of € 78.6 million and a pre-tax result of € – 27.3 million. The result includes € 23 million in charges from the reporting-date-related valuation of derivative positions and € 10 million in impairment risk from planned portfolio streamlining. The Technology Business Unit and Aurubis AG, a participating investment accounted for at equity (IFRS accounting), once again made notably positive contributions to earnings. The Trading Business Unit achieved breakeven, while the results of the Steel Production and Steel Processing business units reflected the very subdued economic development in Europe, above all in Germany.

Against the backdrop of a downturn in selling prices and trading volumes compared with the previous year and due to the deconsolidation of the stainless tubes group in October 2024, the Salzgitter Group’s external sales declined by 13.0 % to € 2.33 billion (Q1 2024: € 2.68 billion). Pressured by selling prices and lower volumes, EBITDA (€ 78.6 million; Q1 2024: € 126.4 million) and the pre-tax result (€ – 27.3 million; Q1 2024: € – 17.2 million) fell short of the figures posted in the year-earlier quarter. The result includes a contribution of € 48.0 million (Q1 2024: € 23.9 million) from Aurubis AG, a participating investment included at equity (IFRS accounting). The after-tax result came in at € – 34.6 million (Q1 2024: € 15.0 million), which brings earnings per share to € – 0.66 (Q1 2024: € 0.24). The return on capital employed (ROCE) stood at – 0.5 % (Q1 2024: 2.6 %). The equity ratio remained at a very sound 43.4 % (Q1 2024: 45.6 %).

Chief Financial Officer Birgit Potrafki commented on the financials as follows:

“In the first quarter of 2025 the economic environment was anything but supportive. The Salzgitter Group nevertheless came close to delivering breakeven and, factoring out € 23 million in charges from the of derivative positions on the reporting date and € 10 million in impairment risk for planned portfolio streamlining, even delivered a marginally positive pre-tax result. The short-term challenges nevertheless persist. Only a few days ago the International Monetary Fund and the German government revised growth expectations for Germany down to zero. Maintaining our focus on measures within the company geared to reinforcing earnings and liquidity is therefore all the more important. With this in mind, we expanded our performance program at the start of the year. Instead of formerly € 250 million, an earnings effect of € 500 million is now to be generated under P28 as the successor program. Of this amount, around € 130 million had been realized by the end of 2024 and another € 14 million in the first quarter of 2025. Along with the scheduled receipt of around € 150 million in subsidies for the implementation of SALCOS®, our stringent working capital management was reflected in a net financial position of € – 623 million that has only changed slightly compared with year-end 2024. With a view to securing long-term economic stability, we will continue to forge ahead with consolidation, flanked by targeted investments in future-oriented innovations.”

 External sales by business unit (EUR million):

EBITDA by business unit (EUR million):

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

Outlook

We reaffirm our guidance from March and continue to anticipate the following for the Salzgitter Group in the financial year 2025:

• sales of between € 9.5 billion and € 10.0 billion,
• EBITDA of between € 350 million and € 550 million,
• a pre-tax result of between € – 100 million and € + 100 million, and
• a return on capital employed (ROCE) marginally above the previous year's figure.

As in recent years, please note that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as exchange rate fluctuations, may considerably affect business performance in the course of the 2025 financial year. The resulting impact on performance may be within a substantial range, either to the positive or to the negative.

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