Klöckner & Co (KCO) Q1 2026 earnings summary

Executive summary

• EBITDA before material special effects rose to €46 million in Q1 2026, up from €42 million in Q1 2025 and €21 million in Q4 2025, despite lower shipment volumes due to US site divestments and strategic portfolio adjustments.

• Net loss narrowed to €4 million in Q1 2026 from €28 million in Q1 2025; EPS improved to -€0.04 from -€0.28.

• Worthington Steel secured 61.87% of shares through a voluntary public takeover, exceeding the 57.5% threshold, with closing expected in H2 2026.

• Strategic focus on higher value-added products and services, with significant acquisitions and divestments to sharpen business focus.

• Share price surged following Worthington Steel's takeover offer, closing Q1 at €12.20.

Financial highlights

• Q1 2026 shipments: 1.1 million tons (-6.4% yoy); sales: €1.6 billion (-5.9% yoy); gross profit: €298 million (-5.8% yoy); EBITDA before special effects: €46 million (+€5 million yoy).

• Gross profit margin remained stable at 19.0% year-over-year.

• Net financial debt increased to €1,092 million from €709 million at year-end 2025.

• Negative operating cash flow of €-270 million, mainly due to seasonal net working capital build-up.

• Free cash flow for Q1 2026 was €-306 million, compared to €-141 million in Q1 2025.

Outlook and guidance

• Q2 2026: Slight increase in shipments and considerable increase in sales expected quarter-over-quarter; EBITDA before special effects forecasted at €40–80 million.

• FY 2026: EBITDA before special effects expected to increase considerably year-over-year; positive operating cash flow anticipated, but below previous year.

• Real steel demand in North America and Europe projected to grow by 1–2% in 2026.

• Transaction closing for Worthington Steel takeover expected in H2 2026, pending regulatory approval.