SSAB (SSAB) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating profit declined year-over-year to just under SEK 3 billion, mainly due to lower US plate prices and weak European markets, but cash flow and safety performance improved, with LTIF at 0.64 per million hours.

• Transformation to fossil-free steelmaking advanced, with 40,000 tons of SSAB Zero produced and sold, major investments in Oxelösund and a new mini-mill in Luleå, and updated SBTi-approved emission targets.

• Science-based emissions targets updated and approved; new green and sustainability-linked finance framework established.

• World's first emission-free steel powder launched for commercial deliveries, targeting 3D printing markets.

• Investment programs for Luleå and Oxelösund progressing, aiming for CO2 elimination and increased flexibility.

Financial highlights

• Q2 2024 revenue was SEK 28,282 million, down from SEK 31,777 million in Q2 2023; operating result was SEK 2,969 million, down from SEK 4,963 million.

• EBITDA was SEK 4 billion, down from SEK 5.9 billion in Q2 last year.

• Operating cash flow for Q2 was SEK 3,214 million.

• Net cash position at end of Q2 was SEK 14.1 billion; net debt/equity ratio at -21%.

• Dividend payout in Q2 was SEK 5 billion; share buyback program completed and 33.2 million shares canceled.

Outlook and guidance

• Q3 2024 expected to see a more pronounced seasonal downturn, with lower shipments and prices across all divisions, especially in Americas due to maintenance.

• Planned maintenance at most production sites in Q3 will further reduce output; maintenance costs for 2024 forecast at SEK 1,555 million.

• CapEx for 2024 updated to SEK 6.3 billion, with peak CapEx expected in 2026-2027, mainly for Luleå investment.

• No restocking expected in Europe in September; cautious approach from service centers.

• Heavy transport demand weakening in Europe; automotive remains structurally strong.