Klöckner & Co (KCO) investor relations material

Executive summary

• Q2 2026 shipments declined due to the sale of eight US distribution sites, but like-for-like shipments increased by 4.3%, and sales rose 12.1% like-for-like, driven by higher average prices.

• EBITDA before material special effects reached €63 million in Q2 2026, in the upper half of guidance, but net income was negative €269 million due to a €151 million impairment charge related to the Becker Group.

• Net financial debt increased to €1,108 million at quarter-end, mainly due to negative operating cash flow and dividend payments.

• Worthington Steel completed a public takeover, now holding about 62% of shares, with a delisting tender offer expected to conclude by August 12, 2026.

• The company is shifting focus to higher value-added and service center business, with the Becker divestment process on track.

Financial highlights

• Sales for Q2 2026 were €1.7 billion, up 3% year-over-year; adjusted for divestments, sales rose by 12.1%.

• Gross profit declined to €243 million, with a margin of 14.4%, mainly due to a write-down at Becker.

• EBITDA before material special effects for H1 2026 totaled €109 million, up from €107 million in H1 2025.

• Net income for Q2 2026 was -€269 million, with EPS at -€2.70.

• Operating cash flow was positive at €10 million in Q2 2026; free cash flow was €7 million.

Outlook and guidance

• Full-year 2026 guidance anticipates a slight decline in shipments but a slight increase in sales compared to 2025.

• EBITDA before material special effects is forecasted between €170 million and €250 million for 2026.

• Operating cash flow is expected to remain positive but below 2025 levels due to increased net working capital.

• Real steel demand in North America and Europe is projected to grow by 1–2% in 2026.

• Q3 2026 started strong, in line with Q2 performance.