Outokumpu (OUT1V) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q3 2025 was EUR 34.4 million, reflecting weak European market conditions and subdued demand, especially in construction and domestic appliances.

• Stainless steel deliveries declined 11% year-over-year, with Europe particularly affected by low demand and high Asian imports.

• The company is advancing its EVOLVE strategy, focusing on cost competitiveness, transformation, and sustainability, with EUR 42 million in savings year-to-date and a target of EUR 100 million annual savings by end of 2027.

• Announced a EUR 45 million investment in a U.S. pilot plant to scale up proprietary low-carbon metals technology.

• A Memorandum of Understanding was signed with Boston Metal to enhance carbon-free material production and circularity.

Financial highlights

• Q3 2025 sales were EUR 1,298 million, down from EUR 1,518 million in Q3 2024 and EUR 1,486 million in Q2 2025.

• Adjusted EBITDA was EUR 34.4 million, down from EUR 86 million in Q3 2024 and EUR 75 million in Q2 2025.

• Net result was EUR -35 million, with earnings per share at EUR -0.07.

• Free cash flow was EUR -55 million, and net debt increased to EUR 230 million.

• Liquidity reserves stood at EUR 1.1 billion, supported by a new three-year term loan.

Outlook and guidance

• Stainless steel deliveries in Q4 2025 are expected to decrease by 5–15% quarter-on-quarter due to continued market weakness and seasonal slowdown.

• Adjusted EBITDA in Q4 2025 is expected to be lower than Q3, with a EUR 20 million negative impact from maintenance and ERP rollout.

• No major raw material-related inventory or derivative gains/losses forecasted for Q4.

• Americas seen as a growth market beyond stainless steel, with new leadership appointed.