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 rose 4.3% and adjusted sales increased 12.1% year-over-year, driven by higher average prices and strong European performance.

• EBITDA before material special effects reached €63 million in Q2 2026 and €109 million for H1 2026, with positive operating cash flow of €10 million.

• Net income for Q2 2026 was -€268 million, mainly due to a €151 million impairment charge related to the Becker Group; net loss for H1 2026 widened to €272 million.

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

• The company is shifting focus to higher value-added and service center business, with ongoing Becker Group divestment and sustainability initiatives advancing.

Financial highlights

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

• Gross profit for Q2 2026 was €243 million, with a margin of 14.4%, down from 19.5% in Q2 2025, mainly due to the Becker write-down.

• EBITDA before material special effects for H1 2026 was €109 million; reported EBITDA including special effects was -€67 million.

• Net financial debt increased to €1,108 million at quarter-end, up from €709 million at year-end 2025.

• Free cash flow for Q2 2026 was €7 million; net working capital at June 30, 2026, was €1,241 million.

Outlook and guidance

• Full-year 2026 guidance: slight decline in shipments, slight increase in sales versus prior year.

• EBITDA before material special effects expected between €170 million and €250 million.

• Positive operating cash flow forecasted for 2026, but below 2025 levels due to increased net working capital.

• North America and Europe steel demand projected to grow by 1–2% in 2026; global demand expected to remain constant.