Klöckner & Co (KCO) Kepler Cheuvreux German Investment Seminar 2026 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 €6,623 million in revenue and €136 million EBITDA in FY 2024, focusing on higher value-added business (HVAB) for profitability and stability.

• Strategic shift towards service center and metal processing, reducing exposure to steel price volatility and commodity cycles.

• SBTI-approved net zero carbon targets, embedding sustainability into operations and product offerings under the Nexigen® brand.

• Global network with a strong customer focus, leveraging digitalization and automation for operational excellence.

Strategic initiatives and business transformation

• Expanding HVAB and service center business to increase profitability and reduce volatility, with longer-term contracts and higher barriers to entry.

• Divested low-margin distribution sites in the US and Europe, reallocating capital to higher-growth, higher-margin segments.

• Acquired NMM, IMS, Sol Components, Amerinox, and Ambo-Stahl to strengthen manufacturing and processing capabilities.

• Enhanced presence in defense, infrastructure, and advanced manufacturing sectors in both Europe and North America.

• Invested in new facilities for electrical steel, aluminum processing, and building installation value chains to capture growth in energy, automotive, and construction markets.

Financial performance and outlook

• 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 due to temporary net working capital increase.

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

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

• Dividend policy targets 30% of net income before special items, with recent payouts of €0.20 per share for 2023 and 2024.