Salzgitter (SZG) Q2 2025 earnings summary

Executive summary

• First half of 2025 saw no recovery, with weak steel demand, low prices, and ongoing market uncertainty from trade disputes and high imports into Europe and Germany.

• Performance and cost-saving programs expanded, achieving €48 million in H1 savings under the P28 program toward a €97 million annual target and €500 million by 2028.

• Technology and Trading units contributed positively, while Steel Production and Processing units faced significant losses.

• Net financial position developed better than anticipated despite ongoing investments.

• Decarbonization and transformation initiatives, including SALCOS®/Zalcos I, continue with a modular investment approach.

Financial highlights

• Sales for H1 2025 at €4.665 billion, down 11% year-over-year (8% excluding deconsolidation effects).

• EBITDA for H1 at €116.8 million, impacted by €80 million negative derivative valuation and €10 million impairment risk.

• Pre-tax result (EBT) was €-83.8 million, down from €11.5 million; consolidated net loss widened to €-88.9 million from €-18.6 million.

• Cash flow from operating activities improved to €81.0 million from €-137.3 million year-over-year, supported by working capital reduction.

• Equity ratio remains strong at 42.2%.

Outlook and guidance

• Full-year sales expected between €9–9.5 billion; EBITDA between €300–400 million; pre-tax result guidance narrowed to €-100 million to €0.

• Only cautious economic recovery expected in H2; positive impacts anticipated from cost savings, lower raw material costs, and strong technology segment.

• CapEx for 2025 expected slightly above €800 million, with possible spillover into 2026.

• ROCE anticipated to be slightly higher year-over-year.

• Management highlights significant risks from price volatility, input costs, and exchange rates.