Klöckner & Co (KCO) Investor presentation summary

Company overview and strategic direction

• Operates from Düsseldorf with ~120 locations, serving over 60,000 customers mainly in North America and Europe, and employs about 6,500 people.

• Achieved €6.6 billion in revenue and €136 million EBITDA in FY 2024, with a focus on higher value-added business (HVAB) and service centers for profitability and stability.

• Holds SBTI-approved net zero carbon targets and offers over 165,000 products.

• Strategic focus on expanding HVAB and service center business to reduce volatility and dependence on steel prices.

• Pursuing growth through operational excellence, digitalization, automation, and sustainability initiatives.

Financial performance and segment results

• Q3 2025 shipments rose 1.9% YoY, but sales declined 2.2% due to lower average prices; gross profit increased 12.9% YoY.

• Q3 2025 EBITDA before special effects was €43m, more than doubling YoY; negative operating cash flow of €118m due to temporary net working capital increase.

• Net financial debt increased to €1,003m by September 2025, with an equity ratio of 44% and leverage of 5.5x.

• Americas segment showed shipment growth and strong EBITDA, while Europe returned to positive EBITDA for the first time since 2023.

• FY 2025 EBITDA before special effects is expected between €170–240m, with a significantly positive operating cash flow.

Portfolio optimization and growth initiatives

• Divested eight low-margin US distribution sites for $119m, reallocating capital to higher value-added and service center business.

• Expanded defense and infrastructure capabilities in Germany, including certification for processing armor materials.

• Acquired Ambo-Stahl and Simfloc AG to enhance specialized steel processing and building installation value chain.

• Invested in aluminum flat-rolled processing and electrical steel capacity in North America to support growth in automotive, industrial, and energy sectors.

• Transformed distribution warehouses into HVAB centers and acquired manufacturing businesses to strengthen profitability.