Outokumpu beats Q2 expectations on US strength despite European weakness

Published 31/07/2025, 08:52
© Reuters.

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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