SSAB (SSAB) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating result was SEK 1,248 million, impacted by SEK 950 million in planned maintenance and weak market conditions, with a continued focus on safety and cost control.

• Transformation projects in Oxelösund and Luleå are progressing as planned, targeting fossil-free steel production, increased flexibility, and significant investments in electric arc furnaces and mini mills.

• Investment programs support growth in high-strength and premium steels, with strong demand for emission-free products, especially in automotive, heavy vehicles, and construction machinery.

• Maintenance costs and weak market conditions, particularly in Europe and the US, weighed on results, while high-strength steel demand was more resilient.

• Johnny Sjöström appointed as new President and CEO, effective October 28, 2024; CEO Martin Lindqvist presented his final interim report.

Financial highlights

• Q3 revenue was SEK 24,373 million, down 17% year-over-year and 14% from Q2, mainly due to lower prices and volumes.

• Q3 EBITDA was SEK 2,320 million, down from SEK 5,307 million year-over-year; operating result was SEK 1,248 million, down from SEK 4,371 million year-over-year and SEK 2,969 million in Q2.

• Q3 steel shipments totaled 1,457 kilotons, down 11% from Q2 and 3% year-over-year.

• Net cash at quarter-end was SEK 13.3 billion; net debt/equity ratio at -20%.

• Earnings per share for Q3 were SEK 1.05, down from SEK 3.40 last year.

Outlook and guidance

• Q4 2024 shipments and realized prices expected to be somewhat lower for Special Steels and Europe, and lower for Americas; US shipments to rise post-maintenance.

• Maintenance costs for 2024 raised to SEK 1,650 million due to extended work in Special Steels and Europe.

• CapEx for 2024 remains at SEK 6.3 billion, with high levels expected through 2027 due to transformation projects.

• Market outlook: heavy transport and construction machinery weak in Europe, stable in US; automotive market structurally growing for AHSS.