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Investing.com -- Acerinox SA (BME:ACX) on Thursday reported second-quarter EBITDA of €112 million, missing consensus estimates of €124 million by 9% as the stainless steel producer faces challenging market conditions.
Shares of Acerinox fell about 3.7% after the report.
The company’s second-quarter performance showed improvement from the first quarter’s adjusted EBITDA of €102 million, but fell short of analyst expectations amid ongoing market pressures.
In Europe, Acerinox’s profitability remains under pressure due to high imports, which have increased from 14% to 23%, weighing on both volumes and prices.
The European market continues to operate at very low demand levels, with inventories increasing.
The U.S. operations through North American Stainless (NAS) delivered solid results despite low final demand and high import levels of 26%. U.S. inventory has stabilized at low levels, approximately 18% below average.
In the High Performance Alloys (HPA) segment, which posted EBITDA of €34 million versus consensus estimates of €36 million, customers are reportedly reluctant to commit capital to large investment projects due to uncertainty around tariff policies.
While aerospace is improving, oil and gas and chemical sectors remain in a "wait and see" mode.
Acerinox generated positive free cash flow of €49 million in the quarter, supported by €73 million in working capital inflows and €68 million from the sale of Bahru.
Capital expenditure reached €68 million, in line with the company’s full-year guidance of €250-300 million.
Looking ahead, Acerinox expects third-quarter performance to be in line with the second quarter, as uncertainty surrounding geopolitical tensions and tariffs continues to weigh on demand.
The company has implemented price hikes in the U.S. market where order books remain stable, while continuing its strategic plan in Europe where additional trade measures are needed to defend the industry.
Acerinox shares currently trade at €10.78, with analysts maintaining a buy rating and a price target of €11.50, suggesting 7% upside potential.
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