Salzgitter (SZG) Q4 2025 earnings summary

Executive summary

• Achieved a return to profitability in 2025, with pretax results close to breakeven, supported by record Technology Business Unit performance and strong Aurubis investment earnings, despite steel-related challenges.

• Focused on restructuring, cost discipline, and portfolio management, including divestments and acquisitions such as DESMA and Thyrolf & Uhle.

• Advanced transformation projects, notably SALCOS phase one, with significant funding secured and no delays planned.

• Achieved €129 million in cost savings through the performance program, double the prior year.

• Maintained a stable dividend proposal and financial stability through disciplined investment and cash management.

Financial highlights

• Sales reached €9.0 billion, down €1.0 billion year-over-year, mainly due to deconsolidation and lower steel segment turnover.

• EBITDA declined to €376 million from €445 million in 2024, with adjusted EBT slightly positive at +2 million EUR; after-tax result was -€70 million.

• Net financial position improved to -€954 million, better than forecasted, but increased due to high decarbonization investment.

• Gross operating cash flow exceeded €500 million, up nearly €100 million year-over-year.

• EPS at -€1.37, improved from -€6.51 in 2024.

Outlook and guidance

• 2026 guidance: sales of €9.5 billion, adjusted EBITDA VX €500–600 million, pre-tax result VX €75–175 million.

• All business units expected to see increased sales in 2026, with technology and Aurubis remaining strong.

• Net financial position expected between -€1.1 billion and -€1.5 billion for 2026.

• Guidance excludes potential effects from the continuation of Hüttenwerke Krupp Mannesmann GmbH.

• Positive momentum anticipated from 2027 as regulatory and government measures take full effect.