Salzgitter (SZG) Q3 2025 earnings summary

Executive summary

• Sales for the first nine months of 2025 declined year-over-year due to divestments, lower prices, and reduced volumes, but a slightly positive pre-tax result was achieved in Q3 2025, the first since Q1 2024, supported by improvement programs and contributions from Aurubis and KHS Group.

• The net financial position improved by EUR 78 million year-over-year, mainly due to working capital release and investment restraint.

• Persistently weak economic and market conditions continue to pressure margins, though some moderate price recovery is emerging.

• The company remains focused on transformation to green steel, with SALCOS phase II postponed by three years and investment decisions for further stages deferred to 2028/29.

Financial highlights

• 9M 2025 external sales were €6.87 billion, down €862 million year-over-year, with EBITDA at €224 million, a decrease of €97 million year-over-year.

• Earnings before tax improved to -€72.7 million from -€141.2 million year-over-year, and earnings after tax at -€46.5 million, up from -€197.7 million.

• Net financial position improved to €-810.9 million from €-889.4 million year-over-year.

• Cash flow from operating activities was €314.6 million, a turnaround from negative in the previous year.

• Net financial debt is expected to be slightly above EUR 1 billion at year-end, better than initial estimates.

Outlook and guidance

• Sales guidance for 2025 is slightly above €9 billion, with EBITDA between €300–350 million and pre-tax result expected between -€100 million and -€50 million.

• Net financial position for next year projected between -€1.5 billion and -€2 billion, depending on the impact of the Steel Action Plan.

• Cautious optimism for 2026, supported by internal performance programs and potential EU trade measures.

• ROCE anticipated to be slightly above the previous year.