SSAB (SSAB) CMD 2025 summary

Strategic direction and market positioning

• Accelerating premium leadership by increasing advanced high-strength steels, value-added services, and decarbonized steel, targeting a premium mix of 65% by 2030 and 75% by 2035.

• Major investments in Luleå and Oxelösund, including a new mini-mill and cold mill complex, will add 1.2 million tons of premium capacity and support decarbonization.

• Transformation to EAF-based mini-mills in Nordic operations aims for significant CO2 reductions and enhanced flexibility, leveraging proven technical feasibility from US operations.

• Subsidiaries Tibnor and Ruukki Construction are expanding value-added services, digitalization, and local presence to drive profitability and growth.

• Strategy focuses on cost efficiency, premium product mix, and resilience, with all divisions targeting higher profitability and outperforming peers.

Financial guidance, investment plans, and performance

• Over-the-cycle EBITDA margin has averaged 14%, with a target to reach 23% after strategic investments, and projected to rise to SEK 23 billion after 2030.

• Planned strategic CapEx totals SEK 58 billion from 2026 to 2030, with strong net cash, secured financing, and a fully financed investment program.

• Maintenance CapEx is expected to remain just below SEK 3 billion per year, decreasing as new technology is implemented.

• Dividend policy remains at 40% of net profit, with net gearing targeted between -20% and +20%.

• Transformation projects are expected to lower fixed costs by 50% and deliver substantial operational and financial benefits.

Technology transformation and operational excellence

• Major shift from blast furnaces to electric arc furnaces in Oxelösund and Luleå enables flexible, low-emission, and premium steel production starting in 2027.

• Luleå's new mini-mill will feature advanced digital EAF, high-productivity caster, and a cold mill complex with fully electric heating and multi-coating flexibility.

• Proven ability to produce advanced grades like Hardox, Armox, and Docol via EAF, leveraging US experience and cross-site collaboration.

• Raw material strategy includes internal scrap, take-back agreements, and flexibility between scrap and pig iron for supply security.

• Operational improvements include high capacity utilization, safety performance, and continuous process optimization, supporting resilience and profitability.