Aperam S.A. (APAM) Q1 2026 (Q&A) earnings summary

Executive summary

• Q1 2026 marked the strongest first quarter in three years, with significant improvements in shipments, sales, and operating income compared to Q4 2025, despite geopolitical and energy market challenges.

• Utilization rates in European stainless operations improved, driven by reduced imports, restocking, and seasonality, leading to higher supply opportunities and margin expansion.

• All segments contributed positively, with Europe benefiting from seasonality, Brazil showing resilience, and Alloys & Specialties progressing despite oil & gas weakness.

• Strategic initiatives, including Leadership Journey® Phase 6, delivered EUR 18 million in gains in Q1 2026, targeting EUR 150 million by 2028.

• No underlying demand improvement is observed; current gains are attributed to supply-side factors and inventory normalization.

Financial highlights

• Shipments rose to 617kt, up 11% sequentially from Q4 2025.

• Sales increased 16% quarter-over-quarter to EUR 1,575 million.

• Adjusted EBITDA grew 34% to EUR 90 million, with margin at 5.7%.

• Operating income turned positive at EUR 34 million, up from a EUR 29 million loss in Q4 2025.

• Free cash flow was negative at EUR 44 million, reflecting working capital build-up.

Outlook and guidance

• Guidance for 2028 EBITDA is set at EUR 700 million–EUR 800 million, with further upside from ongoing CapEx initiatives post-2028.

• Q2 2026 shipments and adjusted EBITDA are expected to be significantly higher than Q1, driven by less import pressure in Europe and seasonal uplift in Brazil.

• FY 2026 capex guidance at ~EUR 200 million; base dividend stable at EUR 2.00/share.

• Net financial debt expected to decrease by year-end 2026.

• Utilization in Europe is expected to lift by 7%-10% as safeguard measures reduce imports, with full impact anticipated in H2 2026.