Aperam S.A. (APAM) Q4 2025 earnings summary

Executive summary

• Delivered solid Q4 2025 results with strong cash flow and accelerated deleveraging, supported by Leadership Journey Phase 5, which achieved EUR 195 million in gains, nearly completing its three-year target in two years.

• Net debt reduced to below EUR 1 billion, exceeding deleveraging targets, with robust operating cash flow and working capital management.

• Universal acquisition closed in January 2025, integration on track for EUR 27 million synergies over five years.

• Announced transformational investments in European operations, including EUR 160 million in new automated cold rolling mills and advanced annealing technology, targeting at least 15% IRR.

• Leadership Journey Phase 6 launched, targeting EUR 150 million in gains for 2026–2028.

Financial highlights

• Q4 2025 adjusted EBITDA was EUR 67 million, down 9% sequentially and 42% year-over-year; full-year adjusted EBITDA was EUR 339 million, down 4.8% year-over-year.

• Sales for 2025 were EUR 6,080 million, down 2.8% year-over-year; Q4 sales were EUR 1,358 million.

• Net income for 2025 was EUR 9 million, a significant decrease from EUR 231 million in 2024, mainly due to lower operating income and higher financing costs.

• Free cash flow before dividend was EUR 248 million, but after the Universal acquisition, it was EUR (167) million.

• Net financial debt at year-end 2025 was EUR 978 million, down 6% from Q3 but up from EUR 544 million in 2024.

Outlook and guidance

• Q1 2026 adjusted EBITDA and shipments are expected to increase sequentially, driven by higher seasonal volumes in Europe.

• FY 2026 capex guidance is approximately EUR 200 million; base dividend to remain stable at EUR 2.00/share.

• Leadership Journey Phase 6 targets EUR 150 million in cumulative gains, with EUR 50 million expected in 2026.

• Net financial debt is guided to increase in Q1 2026 due to seasonally higher working capital needs.

• Long-term normalized EBITDA target set at EUR 700–800 million annually, supported by diversification and innovation.