Klöckner & Co (KCO) Q1 2026 earnings summary

Executive summary

• EBITDA before material special effects rose to €46 million in Q1 2026, up from €21 million in Q4 2025 and €42 million in Q1 2025, driven by higher prices, improved performance in Europe, and strategic portfolio adjustments.

• Shipments fell 6.4% year-over-year to 1.1 million tons due to the divestment of eight US distribution sites, but increased 4.4% sequentially; on a like-for-like basis, shipments and sales increased by 2.1% YoY, supported by positive momentum in Europe.

• Strategic focus shifted further toward higher value-added products and services, with significant acquisitions, divestments, and investments in technology and capacity.

• Worthington Steel secured 61.87% of outstanding shares through a voluntary public takeover, with closing expected in H2 2026 and a domination and profit and loss transfer agreement planned, pending regulatory approval.

• Net loss narrowed to €4 million in Q1 2026 from €28 million in Q1 2025; EPS improved to €-0.04 from €-0.28.

Financial highlights

• Q1 2026 shipments: 1,096 Tto (-6.4% YoY); sales: €1,568m (-5.9% YoY); gross profit: €298m (-5.8% YoY); EBITDA before special effects: €46m (+€5m YoY); on a like-for-like basis, shipments and sales increased by 2.1% YoY.

• Gross profit margin remained stable at 19.0% YoY.

• Net financial debt rose to €1,092 million from €709 million at year-end 2025.

• Operating cash flow was negative at €-270 million, mainly due to seasonal net working capital build-up.

• Free cash flow was negative at €-306 million in Q1 2026, compared to €-141 million in Q1 2025.

Outlook and guidance

• Q2 2026 expected to see a slight increase in shipments and a considerable increase in sales quarter-over-quarter; EBITDA before material special effects forecasted between €40 million and €80 million.

• For full year 2026, shipments expected to decrease slightly YoY due to divestments, but sales and EBITDA before material special effects are expected to increase; positive operating cash flow anticipated, but below previous year.

• Real steel demand in North America and Europe projected to grow by 1–2% in 2026.