Outokumpu (OUT1V) Q3 2026 earnings summary

Executive summary

• Q3 adjusted EBITDA was EUR 101m, stable QoQ, as BA Americas and Ferrochrome offset weaker Europe; stainless steel deliveries fell 7% QoQ.

• EVOLVE initiatives advanced in high-nickel alloys, specialty ferrochrome and low-CO₂ technology; restructuring savings were ahead of plan.

Financial highlights

• Q3 sales were EUR 1,555m, adjusted EBITDA EUR 101m, EBITDA EUR 100m, EBIT EUR 43m and net result EUR 22m.

• Operating cash flow was EUR -83m, including a EUR 177m working-capital outflow; free cash flow was EUR -124m. 9M operating cash flow was EUR 88m.

• Net debt rose to EUR 348m from EUR 230m in Q2; liquidity reserves were EUR 1.1bn, including EUR 300m cash and cash equivalents.

• Q3 capital expenditure was EUR 39m and 9M capital expenditure was EUR 124m; FY CapEx is expected at ~EUR 170m versus the initial EUR 200m plan, mainly due to execution timing.

Outlook and guidance

• Q4 stainless steel deliveries are forecast to decrease 5%-15% QoQ; adjusted EBITDA is expected at a similar level to Q4 2025's EUR 10m.

• Lower deliveries, seasonal costs, weaker fixed-cost absorption and raw-material-related inventory and metal-derivative losses are expected to pressure Q4 adjusted EBITDA.

• Middle East-related energy cost impact is expected at EUR 15m versus pre-crisis levels, up EUR 5m QoQ; Q4 electricity and gas consumption is ~80% hedged.

• European customer inventories are expected to be worked off in H1 2027; recovery may be delayed without stronger end-use demand or investment sentiment.

• The EUR 100m restructuring program targets EUR 60m of savings in 2026 and EUR 40m in 2027; further measures are under scenario planning if Europe remains weak.