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Introduction & Market Context
Acerinox (BME:ACX) presented its Q2 2025 results on July 24, 2025, reporting a 10% quarter-over-quarter improvement in EBITDA despite persistent market challenges. The company’s stock reacted negatively to the results, with shares falling 3.71% to €10.38 following the presentation.
The second quarter was characterized by continued geopolitical tensions, tariff wars, and significant import pressure in Europe. While the US manufacturing PMI remained in contraction territory at 49.0 in June, the European manufacturing environment faced similar challenges with a PMI of 49.5. The company highlighted that its geographical diversification strategy has become increasingly valuable in the current trend of deglobalization.
As shown in the following market overview slide, the US stainless steel market maintained stable demand at low levels with historically minimal inventories, while Europe saw a 17% increase in apparent demand but faced a sharp 75% rise in imports:
Quarterly Performance Highlights
Acerinox reported Q2 2025 EBITDA of €112 million, representing a 10% improvement over Q1 but a decline from €125 million in Q2 2024. Net sales reached €1,507 million for the quarter, with H1 2025 sales totaling €3,058 million. The company generated positive operating cash flow of €48 million in Q2 and €148 million for the first half of the year.
The quarter’s results were negatively impacted by USD depreciation (€10 million effect) and inventory adjustments (€28 million). Additionally, a non-cash tax impairment of €48 million affected the bottom line, resulting in a net loss after taxes and minorities of €28 million for the quarter.
The following consolidated financial highlights provide a comprehensive view of the company’s performance:
The company’s "More than Resilient" slide illustrates Acerinox’s performance across financial, strategic, and ESG dimensions:
Segment Performance
Stainless Steel Division
The Stainless Steel division showed resilience in Q2, with EBITDA increasing 20% quarter-over-quarter to €78 million, though this represents a 15% decline from Q2 2024. The division’s performance was supported by solid contribution from North American Stainless (NAS) despite market uncertainties, while European operations continued to face pressure from imports.
Melting production reached 480,000 metric tons in Q2, with net sales of €1,080 million and an EBITDA margin of 7%. The division generated €43 million in operating cash flow before investments during the quarter.
High-Performance Alloys Division
The High-Performance Alloys division experienced a softer Q2 due to lower volumes, particularly in the Oil & Gas and Chemical Process Industry sectors in Europe. EBITDA declined 8% quarter-over-quarter to €34 million, though H1 2025 EBITDA of €72 million represents an 11% improvement year-over-year.
Net sales for the division reached €433 million in Q2, with melting production of 21,000 metric tons. The EBITDA margin held steady at 8%, while operating cash flow was €6 million for the quarter and €64 million for H1.
Strategic Initiatives and Capital Allocation
Acerinox continues to execute its strategic initiatives focused on expansion and diversification. The company is investing to increase production capacity by 20% at NAS and 15% at VDM Metals, while implementing a new business model for Acerinox Europa and advancing with the Haynes International (NASDAQ:HAYN) integration.
The "Beyond Excellence" program, targeting €100 million in EBITDA savings between 2024 and 2026, has achieved €23 million in H1 2025, representing 50% of the 2025 target. These savings came from multiple areas including efficiency (€6 million), productivity (€7 million), and customer-centric initiatives (€4 million).
The company’s capital allocation in Q2 shows significant investment activity, with CAPEX of €68 million (compared to €41 million in Q2 2024). Net financial debt increased by €27 million compared to Q1, primarily due to translation differences of €76 million resulting from USD depreciation.
Acerinox also highlighted its "Control the Controllables" strategy for navigating market uncertainties while focusing on clear strategic objectives:
Outlook and Guidance
Looking ahead, Acerinox expects Q3 2025 EBITDA to be in line with Q2 despite traditional seasonality effects. The company acknowledged that uncertainties persist, leading to low visibility, but emphasized its strategic strengths including expansion in stainless steel in the U.S. and high-performance alloys worldwide.
Management highlighted that the company’s financial strength enables continued growth while maintaining shareholder remuneration. For the stainless steel segment, strength in the U.S. market helps mitigate exposure to the weak European market, while the high-performance alloys segment faces a weak order book in Europe with gradual improvement expected in the U.S.
The company continues to advance its sustainability initiatives, having achieved a 25% reduction in GHG emissions intensity (Scope 1&2) from FY 2021 levels, with a target of 45.3% reduction by 2030. Acerinox also launched EcoACX®, a sustainable product featuring 90% recycled material in raw materials, 50% less CO₂ intensity, and 100% renewable energy usage.
In conclusion, while Acerinox faces significant market headwinds, particularly in Europe, the company’s geographical diversification, strategic investments, and operational improvements position it to navigate the challenging environment. The focus on "controlling the controllables" remains central to the company’s approach as it works to deliver on its strategic objectives despite persistent market uncertainties.
Full presentation:
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