Outokumpu (OUT1V) Q4 2025 earnings summary

Executive summary

• 2025 was marked by subdued stainless steel demand and economic uncertainty, pressuring profitability, especially in Europe, while Americas and Ferrochrome segments showed resilience and improved profitability.

• Adjusted EBITDA for 2025 was EUR 167 million, down from EUR 177 million in 2024, with Q4 particularly weak due to market and operational challenges.

• The EVOLVE growth strategy advanced, including investments in low-CO₂ metals technology and a $45 million U.S. pilot plant.

• Achieved significant cost savings, closing a three-year EUR 350 million run rate program and a €60 million short-term program.

• Policy instruments like CBAM and tariffs are reducing imports and supporting domestic demand in Europe and Americas.

Financial highlights

• 2025 sales were EUR 5,468 million, down from EUR 5,942 million in 2024; adjusted EBITDA was EUR 167 million.

• Q4 2025 group profitability was EUR 10 million, with net result at EUR -65 million; full-year net result was EUR -137 million.

• Free cash flow improved in Q4 2025 to EUR 49 million, with total liquidity reserves of EUR 1.2 billion and net debt at EUR 265 million.

• Dividend proposal of EUR 0.13 per share for 2025, to be paid in two installments.

• ROCE for 2025 was -3.2%; earnings per share for FY 2025 was EUR -0.31.

Outlook and guidance

• Adjusted EBITDA in Q1 2026 expected to be higher than Q4 2025, driven by a 20–30% increase in stainless steel deliveries.

• Market dynamics expected to improve in 2026, with CBAM and safeguards supporting European demand and positive order book trends in Americas.

• Global stainless steel demand is expected to remain soft in early 2026, with gradual improvement later in the year.

• Robust demand for low-emission ferrochrome expected to continue.

• CapEx guidance for 2026 is around EUR 200 million, excluding major new investments.