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Investing.com -- Finnish stainless steel producer Outokumpu on Thursday reported second-quarter adjusted EBITDA of €75 million, exceeding analyst consensus of €65 million by 15%, driven primarily by stronger performance in its American operations.
The Q2 result marked a significant improvement from the €49 million reported in the first quarter. The company attributed this growth to a slight increase in stainless steel deliveries and higher prices in the United States, which helped offset weak European prices.
Total (EPA:TTEF) stainless steel deliveries increased 3% quarter-over-quarter, with improvements in both European and American markets.
The Americas segment was particularly strong, posting EBITDA of €29 million versus analyst expectations of €22 million, benefiting from 7% higher shipments and slightly higher prices.
The European division underperformed with EBITDA of €16 million, below the €24 million consensus, despite 2% higher shipments, as considerably lower realized prices weighed on results.
Outokumpu’s Ferrochrome division beat expectations with €32 million EBITDA versus €28 million consensus, with shipments up 6% quarter-over-quarter due to higher internal demand, though this was partially offset by higher maintenance costs.
The company generated positive free cash flow of €21 million in the quarter, supported by €44 million in working capital inflows.
Capital expenditure was €35 million, in line with the company’s reduced full-year guidance of €160 million, down from approximately €200 million previously.
During the second quarter, Outokumpu achieved €18 million in cost-saving measures, with €50 million expected for the full year 2025.
The company reported a €15 million EBITDA run rate improvement, bringing the cumulative total to €328 million, as it progresses toward its €350 million target by year-end.
Looking ahead to the third quarter, Outokumpu expects shipments to decrease by 5-15% quarter-over-quarter, primarily due to seasonal weakness in Europe, where pressure on prices is anticipated to continue.
With no significant changes expected in the US market and some raw material-related losses, the company forecasts lower EBITDA for the third quarter.
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