Acerinox (ACX) Q2 2024 earnings summary

Executive summary

• Q2 EBITDA reached €125 million, totaling €236 million for H1, despite weak stainless steel markets and a five-month strike at Acerinox Europa.

• Strong cash generation in H1 supported a €150 million reduction in net debt to €191 million.

• Satisfactory performance from NAS and High-Performance Alloys divisions contributed to results.

• Sustainability and circular economy initiatives exceeded targets, especially in water withdrawal and waste valorization.

• Management committee reorganized and leadership changes implemented to enhance agility and efficiency.

Financial highlights

• Q2 EBITDA was €125 million (margin 10%), up from €111 million in Q1; H1 EBITDA was €236 million (margin 8%), down 49% year-over-year.

• Q2 net sales were €1,299 million, down 25% year-over-year; H1 net sales at €2,781 million, down 21%.

• H1 EBIT was €155 million, down 59% year-over-year; Q2 EBIT was €84 million.

• Operating cash flow for H1 was €266 million, with free cash flow of €188 million after €78 million in investments and €77 million in dividends.

• Net financial debt at June 30 was €191 million, a reduction of €150 million since Q4 2023.

Outlook and guidance

• Q3 EBITDA is expected to be in line with Q2, reflecting ongoing market uncertainty and seasonality.

• Ramp-up at Acerinox Europa targets 80% utilization by October/November, with positive EBITDA expected as order book rebuilds.

• HPA segment maintains a stable order book and market.

• CapEx for 2024 will remain high but may be slightly lower than planned due to project delays; some projects will shift to 2025.

• Haynes acquisition expected to close by end of Q4 2024, pending final regulatory approvals.