Klöckner & Co (KCO) investor relations material

Executive summary

• Achieved solid full-year 2025 performance with shipments rising 1.7% to 4.53 million tons, resilient profitability, and improved net income to €-53 million from €-176 million, despite tariff, trade, and FX headwinds.

• Worthington Steel launched a takeover bid at €11.00 per share, lowering the minimum acceptance threshold to 57.5% and extending the offer period to March 26, 2026; management supports the deal.

• Strategic focus on higher value-added products and services, with divestment of eight US distribution sites, Becker Group in Germany, and the Brazilian subsidiary, alongside acquisitions in Switzerland and Germany.

• Proposed dividend of €0.20 per share for 2025, marking the fifth consecutive annual payout.

Financial highlights

• Full-year 2025 sales reached €6.4 billion, a 3.8% year-over-year decrease due to lower average prices and negative FX effects.

• Gross profit increased 8.2% year-over-year to €1,204 million, with gross margin improving to 18.9% from 16.8%.

• EBITDA before material special effects rose to €171 million, up from €136 million, within guidance.

• Operating cash flow was €110 million, positive for the fourth consecutive year.

• Free cash flow reached €105 million, including proceeds from US site divestments.

• Net financial debt reduced to €709 million, the lowest since Q2 2023.

• Equity ratio stood at 48%, with gearing at 45% and leverage at 4.1x.

Outlook and guidance

• Expecting a decent recovery in 2026, with North American and European steel demand projected to rise 1%-2% year-over-year.

• Q1 2026 EBITDA before material special effects forecasted between €20 million and €60 million.

• Full-year 2026 shipments and sales expected to remain constant year-over-year, excluding divested sites, with EBITDA and operating cash flow anticipated to increase considerably.