Outokumpu (OUT1V) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA rose to EUR 49 million in Q1 2025, reflecting improved profitability despite volatile market conditions, a one-week strike in Finland, and ongoing uncertainty.

• Group deliveries increased, with stainless steel up 11% quarter-over-quarter and 6% year-over-year, supported by strong performance in the Americas and Europe.

• BA Ferrochrome delivered its best result since Q2 2022, with adjusted EBITDA of EUR 43 million, driven by strong demand, higher prices, and cost optimization.

• Recycled material content reached a record 97%, reinforcing sustainability leadership and contributing to lower costs and CO2 emissions.

• The company achieved a cumulative EUR 313 million EBITDA run-rate improvement since the start of phase two, targeting EUR 350 million by year-end.

Financial highlights

• Q1 2025 sales were EUR 1,524 million, up from EUR 1,479 million in Q1 2024 and EUR 1,405 million in Q4 2024.

• Adjusted EBITDA was EUR 49 million (Q1 2024: EUR 38 million; Q4 2024: EUR -3 million).

• Net result was EUR -18 million, with EPS at EUR -0.04.

• Free cash flow was EUR -62 million, mainly due to seasonal working capital increase.

• Net debt increased to EUR 252 million, with liquidity reserves at EUR 1.2 billion.

Outlook and guidance

• Stainless steel deliveries in Q2 2025 expected to rise 0–10% versus Q1, which was impacted by the strike.

• Adjusted EBITDA for Q2 2025 expected at a similar or higher level compared to Q1.

• Maintenance in Ferrochrome to have up to EUR -10 million impact on adjusted EBITDA in Q2; raw material-related gains anticipated.

• Geopolitical and tariff uncertainties may impact deliveries, prices, and FX rates.