Aperam S.A. (APAM) Q4 2024 (Q&A) earnings summary

Executive summary

• Quarterly and annual results showed increased earnings and profitability despite a challenging market, supported by a differentiated value chain, higher steel volumes in Europe, and solid results in Brazil.

• Universal Stainless & Alloy Products acquisition completed in January 2025, expanding US and aerospace presence and strengthening the Alloys segment.

• Leadership Journey® Phase 5 delivered EUR 95 million gains in 2024, with a target of over EUR 200 million by 2026.

• Aperam received top ESG ratings from MSCI and Sustainalytics and was named best steel company by Times magazine in November 2024.

Financial highlights

• Adjusted EBITDA rose 17% sequentially to EUR 116 million in Q4 2024 and 17.1% to EUR 356 million for 2024, with Alloys segment EBITDA doubling to EUR 82–83 million.

• 2024 sales declined 5.1% to EUR 6,255 million due to lower raw material prices, despite higher shipments.

• Free cash flow was EUR 146 million in Q4 and EUR 125 million for 2024; net financial debt increased to EUR 544 million at year-end.

• Basic EPS was EUR 0.17 in Q4, with clean EPS at EUR 0.33; full-year EPS reached EUR 3.20.

Outlook and guidance

• Q1 2025 shipments expected to rise, but EBITDA is forecasted to be lower than Q4 2024 due to price pressure and seasonality.

• Universal Stainless consolidation from January 2025 will increase financial debt and working capital.

• Plan to achieve a EUR 300 million EBITDA uplift by end of 2025 remains unchanged.