Aperam S.A. (APAM) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered stable results amid a volatile environment, with sales rising to €1,658M and shipments up 14% to 575k tonnes, supported by cost improvements and the Universal acquisition.

• Universal acquisition closed in January and was fully consolidated from January 23, 2025, expanding the value chain and boosting the Alloys & Specialties segment.

• Leadership Journey 5 delivered EUR 21 million in Q1, with EUR 116 million cumulative achievements.

• ESG initiatives advanced, including a EUR 250 million IFC loan for sustainable forest management and decarbonization in Brazil.

• Net loss of €18M (EPS: -€0.24); pro forma net income excluding Universal was €7M.

Financial highlights

• Q1 2025 adjusted EBITDA was EUR 86 million, with margin at 5.2% and EBITDA per ton at EUR 200.

• Sales were EUR 1,658 million, flat year-over-year and up 13% sequentially.

• Exceptional items totaled negative EUR 36 million, mainly due to Universal acquisition effects.

• Net financial debt increased to EUR 1,235 million, primarily due to the Universal acquisition and seasonal working capital build-up.

• Free cash flow was negative, reflecting acquisition and working capital needs.

Outlook and guidance

• Q2 2025 shipments and adjusted EBITDA expected to be higher sequentially, driven by seasonality, Universal consolidation, and improved volumes.

• Price pressure in Europe will persist, but Universal will be fully consolidated, supporting EBITDA.

• Deleveraging to begin in Q2, with net financial debt targeted to normalize by end of 2027.

• CapEx for 2025 remains at EUR 200 million, focused on maintenance, productivity, and alloys.

• Dividend policy remains progressive, with a stable base dividend.