Outokumpu Corporation
Interim report
October 29, 2025 at 9.00 am EET
Outokumpu interim report January-September 2025 - Adjusted EBITDA was EUR 34
million in Q3, reflecting weakness in the European market
Highlights in Q3 2025
· Stainless steel deliveries were 432,000 tonnes (459,000 tonnes)*.
· Adjusted EBITDA was EUR 34 million (EUR 86 million).
· EBITDA was EUR 29 million (EUR 81 million), impacted by items affecting
comparability of EUR -5 million (EUR -5 million).
· Earnings per share was EUR -0.07 (EUR 0.05).
· Free cash flow was EUR -55 million (EUR -113 million).
· ROCE was -2.7% (-7.1%).
· Net debt was EUR 230 million (June 30, 2025: EUR 169 million).
*Figures in parentheses refer to the corresponding period for 2024, unless
otherwise stated.
Highlights in Q1-Q3 2025
· Stainless steel deliveries were 1,385,000 tonnes (1,371,000 tonnes)*.
· Adjusted EBITDA was EUR 157 million (EUR 180 million).
· EBITDA was EUR 115 million (EUR 174 million) impacted by items affecting
comparability of EUR -42 million (EUR -6 million).
· Earnings per share was EUR -0.16 (EUR -0.02).
· Free cash flow was EUR -96 million (EUR -105 million).
· The first installment of dividend approved in Annual General Meeting for
year 2024, of EUR 0.13 was paid during Q2 2025.
Strategy highlights
· On October 29, 2025, Outokumpu announced that it is proceeding with the
EVOLVE strategy to enhance the production of critical carbon-free materials,
such as chromium metal and enriched ferrochrome. The company invests
approximately USD 45 million in a new pilot plant in New Hampshire, U.S.,
planned to be operational in H1 of 2027.
· On October 6, Outokumpu announced that Johann Steiner was appointed as
President, business area Americas as of October 6, 2025. Previously Johann held
the role of EVP, Strategy, Sustainability & People. The search for his successor
is ongoing.
· On October 1, 2025, Outokumpu announced that it is proceeding with its
planned restructuring program aimed at achieving structural annual cost savings
of EUR 100 million by the end of 2027. The scope of the restructuring program is
mainly focused on business area Europe and global group functions. The planned
structural cost savings are to be achieved through fixed-cost reductions,
efficiency improvements across the organization, and optimization of the
production footprint. The planned measures, subject to customary local
negotiations in accordance with local legislation, are expected to affect
approximately 650 Outokumpu full-time positions by the end of 2027. Outokumpu
anticipates recording a restructuring provision (an item affecting
comparability) of approximately EUR 45 million mainly in the fourth quarter of
2025. The majority of the EUR 45 million cash flow impact is expected in 2026.
This program has not impacted the company's third quarter result.
· On September 9, 2025, as part of the transformative initiatives of the
EVOLVE strategy, Outokumpu announced the signing of a Memorandum of
Understanding (MoU) with Boston Metal, a technology company redefining global
metals production, to enhance the production of critical carbon-free materials
vital for industries such as defense and aerospace.
· During the third quarter, Outokumpu improved its EBITDA run-rate by EUR 8
million, which translates into a cumulative improvement of EUR 336 million since
the start of the second phase of the strategy. Improvements in the third quarter
were mainly driven by business area Europe, through continued value creation
from Outokumpu Circle Green® products, through the transition to district
heating solutions to reduce energy costs, as well as through the insourcing of
selected contractor services. In business area Americas, further savings were
realized through continued process optimization in Calvert, U.S.
Key figures
EUR million, or as Q3/25 Q3/24 Q2/25 Q1-Q3/25 Q1-Q3/24 2024
indicated
Sales 1,298 1,518 1,486 4,308 4,537 5,942
EBITDA 29 81 39 115 174 162
Adjusted EBITDA 1) 34 86 75 157 180 177
Operating profit (EBIT) -24 32 -21 -51 14 -51
Adjusted EBIT 1) -19 31 21 -2 15 -43
Result before taxes -34 22 -28 -85 -14 -89
Net result for the period -35 20 -19 -72 -8 -40
Earnings per share, EUR -0.07 0.05 -0.04 -0.16 -0.02 -0.09
Return on capital employed, -2.7 -7.1 -1.4 -2.7 -7.1 -1.2
rolling 12 months (ROCE), %
Capital expenditure 25 37 35 112 133 216
Free cash flow -55 -113 21 -96 -105 -71
Net debt 230 212 169 230 212 189
Stainless steel deliveries, 432 459 483 1,385 1,371 1,793
1000 tonnes
[1) ]Adjusted EBITDA or EBIT = EBITDA or EBIT - Items affecting comparability.
President & CEO Kati ter Horst
The underlying demand for stainless steel continues to be subdued due to low
investment and manufacturing activity as well as weak consumer confidence.
Furthermore, the European stainless steel market has been burdened by the high
volumes of low-priced Asian imports for some time. Therefore, I am delighted to
see that the European Commission has acted decisively to enhance the competitive
position of the industry in its home market by proposing the implementation of
more effective safeguards as part of the Steel and Metals Action Plan. The
proposed measures include the reduction of import quotas by nearly half, a 50%
tariff on volumes exceeding the quota, and an introduction of the melted and
poured principle. These policies are set to take effect by mid-2026 at the
latest and are hopefully soon approved by the European Parliament and the Member
States. With better safeguards and the implementation of the Carbon Border
Adjustment Mechanism (CBAM) in January 2026, we would finally move towards
creating a level playing field for the European steel industry and supporting
the continuation of the green transition in Europe.
In the current market environment, we continue to take our own measures to
improve our cost position and performance. We have started negotiations
regarding the EUR 100 million cost-reduction program across the company. The
main focus is on business area Europe and group functions, but all business
areas will contribute to reaching the target by the end of 2027. Unfortunately,
this is expected to impact some 650 full-time positions in the company.
Further, our EBITDA run-rate improvement and short-term cost savings programs
are progressing according to plan. Since 2023, we have achieved EUR 336 million
EBITDA run-rate improvements towards the EUR 350 million target by the end of
2025 and our short-term costs savings total EUR 42 million at the end of the
third quarter, well on track towards the EUR 60 million target by the end of
this year.
In the current geopolitical environment, access to critical minerals is a
strategic topic around the world. Therefore, I am excited about taking the next
step in scaling up an innovative proprietary technology by investing
approximately USD 45 million in a new pilot plant in New Hampshire in the U.S.,
to produce critical carbon-free materials, such as chromium metal and enriched
ferrochrome. This is a transformative investment and an essential part of our
EVOLVE growth strategy, which aims to create a path to green metals through
technology and our chrome mine — the only one in the EU area.
To enhance our strategy implementation, I have made a change in the Outokumpu
Leadership Team. Since October 6, Johann Steiner, previously EVP, Strategy,
Sustainability & People, has been leading business area Americas. We see
Americas as a geographically interesting growth market beyond standard stainless
steel, and Johann's strong strategic background will offer great support to the
team. The recruitment for Johann's successor is ongoing.
In Q3, our Group's adjusted EBITDA was EUR 34 million, reflecting an 11%
decrease in stainless steel deliveries from the second quarter, driven by weak
underlying market demand and high volumes of Asian imports into Europe.
In business area Europe, adjusted EBITDA stood at EUR -12 million, and stainless
steel deliveries decreased by 12% quarter-on-quarter. The European market
continued to be sluggish, as we expected, and stainless steel prices were under
pressure for the whole quarter.
In business area Americas, adjusted EBITDA was EUR 30 million, and stainless
steel deliveries decreased by 6% compared to the previous quarter. Prices
increased during the third quarter, but we have not yet seen a pickup in
industrial activity and stainless steel demand.
In business area Ferrochrome, adjusted EBITDA amounted to EUR 21 million. Demand
for our European, low-emission ferrochrome has remained solid. Sales volumes
were somewhat higher than in the second quarter, but the result was negatively
impacted by weakened U.S. dollar and higher variable costs, especially in
electricity.
After a good safety performance until end of August, I regret to say that we had
a very disappointing September with a major accident in Mexinox. Our safety
performance weakened compared to last year and the total recordable incident
frequency rate (TRIFR) was 2.6 in the third quarter, bringing the year-to-date
TRIFR to 1.9 versus our target of 1.5. We have carefully analyzed the causes of
the deterioration in safety performance and we are taking prompt actions to
return to our targeted level. On the positive side, we maintained our very high
recycled material content level of 97% and firmly proceeded towards our SBTi
climate target.
Lastly, I want to thank our employees for their dedication during these
challenging times, our customers for their loyalty and confidence, our suppliers
for their valuable collaboration, and our shareholders for their ongoing
support.
Outlook for Q4 2025
Group stainless steel deliveries in the fourth quarter are expected to decrease
by 5-15% compared to the third quarter mainly due to continued market weakness
in business area Europe and seasonal slowdown in business area Americas. Asian
imports to Europe still remain high compared to the low demand in the stainless
steel market.
Maintenance breaks in business areas Europe and Americas as well as the rollout
of a new Enterprise Resource Planning (ERP) system and supply chain solution in
business area Europe, are expected to have an impact of up to EUR -20 million on
adjusted EBITDA in the fourth quarter compared to the third quarter.
With the current raw material prices, no major raw material-related inventory
and metal derivative gains or losses are forecasted to be realized in the fourth
quarter.
Guidance for Q4 2025:
Adjusted EBITDA in the fourth quarter of 2025 is expected to be lower compared
to the third quarter.
Results
Q3 2025 compared to Q3 2024
Adjusted EBITDA in the third quarter of 2025 was EUR 34 million (EUR 86
million). Total stainless steel deliveries were 6% lower compared to the
previous year as deliveries decreased significantly in business area Europe due
to weak market conditions, while deliveries increased in business area Americas.
Realized prices for stainless steel were significantly lower in business area
Europe, while prices remained stable in business area Americas. This resulted in
sales of EUR 1,298 million (EUR 1,518 million).
Profitability was supported by lower raw material costs in business area Europe
and Americas in addition to EUR 13 million of short-term cost-saving measures.
The positive cost impact was partly offset by the decreased profitability of
business area Ferrochrome. Raw material-related inventory and metal derivative
gains were EUR 5 million (gains of EUR 10 million).
Adjusted EBITDA for other operations and intra-group items was EUR -5 million
(EUR -8 million). The Group's EBITDA was EUR 29 million (EUR 81 million),
impacted by items affecting comparability of EUR -5 million (EUR -5 million).
EBIT was EUR -24 million (EUR 32 million). ROCE for rolling 12 months was -2.7%
(-7.1%). The comparison period for ROCE was affected by the significant
impairment recording related to the renegotiated hot rolling contract in
business area Americas at the end of 2023. Net result was EUR -35 million (EUR
20 million) and earnings per share was EUR -0.07 (EUR 0.05). Net financial
expenses were EUR 11 million (EUR 11 million) and interest expenses EUR 13
million (EUR 15 million). Income taxes was impacted by Germany enacting a
corporate tax rate decrease which led to a remeasurement of the deferred tax
asset of EUR -10 million of which EUR -6 million decreasing net income.
Q3 2025 compared to Q2 2025
Adjusted EBITDA in the third quarter of 2025 was EUR 34 million (Q2/2025: EUR 75
million). Total stainless steel deliveries were 11% lower compared to the
previous quarter as deliveries decreased in both business areas, especially in
business area Europe, due to weak market conditions and seasonality. Realized
prices for stainless steel were lower in business area Europe, while increased
in business area Americas. This resulted in sales of EUR 1,298 million (Q2/2025:
EUR 1,486 million).
Profitability was supported by lower raw material costs and higher fixed cost
absorption in business area Europe, as well as short-term cost-saving measures
of EUR 13 million (Q2/2025: EUR 18 million). This was partly offset by increased
maintenance costs, driven by the maintenance breaks in business area Europe.
Additionally, the result was impacted by the decreased result in business area
Ferrochrome, mainly due to an unfavorable EUR/USD foreign exchange rate and
lower fixed cost absorption due to seasonally lower production. Raw material
-related inventory and metal derivative gains were EUR 5 million (Q2/2025: gains
of EUR 6 million).
Adjusted EBITDA for other operations and intra-group items was EUR -5 million
(Q2/2025: EUR -3 million). The Group's EBITDA was EUR 29 million (Q2/2025: EUR
39 million), impacted by items affecting comparability of EUR -5 million
(Q2/2025: EUR -35 million).
EBIT was EUR -24 million (Q2/2025: EUR -21 million). ROCE for the rolling 12
months was -2.7% (Q2/2025: -1.4%), due to weaker profitability in the third
quarter. Net result was EUR -35 million (Q2/2025: EUR -19 million) and earnings
per share was EUR -0.07 (Q2/2025: EUR -0.04). Net financial expenses were EUR 11
million (Q2/2025: EUR 8 million) and interest expenses EUR 13 million (Q2/2025:
EUR 13 million).
Q1-Q3 2025 compared to Q1-Q3 2024
Adjusted EBITDA in January-September 2025 was EUR 157 million (EUR 180 million).
Total stainless steel deliveries were 1% higher compared to the previous year as
deliveries increased in business area Americas, while moderately decreased in
business area Europe despite the longer strike in the comparison period,
demonstrating the weakness of the market environment. Realized prices for
stainless steel decreased in both business areas, especially in business area
Europe. This resulted in sales of EUR 4,308 million (EUR 4,537 million).
Profitability was supported by lower raw material costs and also short-term cost
-saving measures of EUR 42 million in January-September 2025. In addition,
improved financial performance in business area Ferrochrome had a positive
impact on the result, mainly due to lower electricity and reductant prices, and
higher fixed cost absorption. Raw material-related inventory and metal
derivative gains were EUR 11 million in January-September 2025 (losses of EUR 2
million).
The impact of the union strike in Finland was approximately EUR -15 million in
the first half of 2025, as local operations were down for one week in January.
In comparison, the first half of 2024 was affected by the four-week political
strike in Finland with an impact of approximately EUR -60 million. The strike
also impacted indirectly the company's operations in other countries through the
disruption to internal material flows in business areas Europe and Americas.
Adjusted EBITDA for other operations and intra-group items was EUR -19 million
(EUR -34 million). The Group's EBITDA was EUR 115 million (EUR 174 million),
impacted by items affecting comparability of EUR -42 million (EUR -6 million),
which are mainly related to the restructuring provision in relation to the
EVOLVE strategy, which was recognized in Q2.
EBIT was EUR -51 million (EUR 14 million). ROCE for the rolling 12 months was
-2.7% (-7.1%). ROCE in the previous year was affected by the significant
impairment booking related to the renegotiated hot rolling contract in business
area Americas at the end of 2023. Net result was EUR -72 million (EUR -8
million) and earnings per share was EUR -0.16 (EUR -0.02). Net financial
expenses were EUR 36 million (EUR 30 million) and interest expenses EUR 43
million (EUR 48 million).
Adjusted EBITDA by segment
EUR million Q3/25 Q3/24 Q2/25 Q1-Q3/25 Q1-Q3/24 2024
Europe -12 59 16 10 91 58
Americas 30 5 29 70 49 59
Ferrochrome 21 29 32 96 73 106
Other operations -5 -8 -3 -19 -34 -46
and intra-group
items
Total adjusted 34 86 75 157 180 177
EBITDA
Items affecting comparability in EBITDA
EUR million Q3/25 Q3/24 Q2/25 Q1-Q3/25 Q1-Q3/24 2024
Europe -1 -4 -33 -36 -2 -3
Americas -4 — -2 -6 — -8
Other operations — 0 — — -4 -4
Total items affecting -5 -5 -35 -42 -6 -15
comparability in
EBITDA
Total EBITDA 29 81 39 115 174 162
A live webcast and conference call today, October 29, at 2.30pm EET
A live webcast and conference call to analysts, investors and representatives of
media will be arranged today at 2.30 pm EET at
https://outokumpu.events.inderes.com/q3-2025 hosted by President and CEO Kati
ter Horst and CFO Marc-Simon Schaar.
To ask questions, please participate in the conference call by registering at
https://events.inderes.com/outokumpu/q3-2025/dial
-in (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.ind
eres.com%2Foutokumpu%2Fq3-2025%2Fdial
-in&data=05%7C02%7Ckarin.mattila%40outokumpu.com%7C025e402eba3e4bbde7b808de065dd1
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FpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWF
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Cu8ghlo%3D&reserved=0). After registration you will receive phone number and a
conference ID to access the conference call. If you wish to ask a question,
please dial *5 on your telephone keypad to enter the queue.
All the interim report materials, a link to the webcast and later its recording
will be available at www.outokumpu.com/en/investors.
For more information:
Investors: Ulla Paajanen, SVP, IR and Strategic Advisory, tel. +358 40 763
8767
Media: Päivi Allenius, SVP - Communications and Brand, tel. +358 40 753 7374, or
Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com
Outokumpu Corporation
Outokumpu is accelerating the green transition as the global leader in
sustainable stainless steel. Our business is based on the circular economy: our
products are made from 95% recycled materials, which we then turn into fully
recyclable stainless steel. This steel is utilized in various applications
across society, including infrastructure, mobility, and household appliances. We
are committed to 1.5°C target to mitigate climate change, and with up to 75%
lower carbon footprint than the industry average, we support our customers to
reduce their emissions. Together, we are working towards a world that lasts
forever. Outokumpu Corporation employs approximately 8,700 professionals in
close to 30 countries, with headquarters in Helsinki, Finland and shares listed
in Nasdaq Helsinki. Read more: www.outokumpu.com