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 around 6,500 people.

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

• Strategic shift from steel distribution to metal processing, emphasizing service center and HVAB to reduce exposure to steel price volatility.

• Pursuing growth through acquisitions (NMM, IMS, Sol Components, Amerinox, Ambo-Stahl, Haley Tool & Stamping, Simfloc AG) and divestments of low-margin distribution sites.

• Aims to become the leading service center and metal processor in North America and Europe by 2030, targeting >5% EBITDA margin and >10% ROCE.

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 reached €43m, more than doubling YoY, with positive contributions from both Americas and Europe.

• Negative operating cash flow of €118m in Q3 2025 due to temporary net working capital increase; net financial debt rose to €1,003m.

• Equity ratio at 44%, gearing at 66%, and leverage at 5.5x as of September 2025.

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

Market positioning and operational focus

• Holds 7% market share in North America and 9% in Europe, operating in fragmented markets.

• Around 60% of sales generated in North America, with a strong local-for-local sourcing and sales model in both regions.

• Portfolio optimization includes transforming warehouses into HVAB centers and focusing on industries like defense, infrastructure, automotive, and renewables.

• Investments in advanced processing facilities and digitalization to drive operational excellence and customer centricity.