Public Joint Stock Company Magnitogorsk Iron & Steel Works (MAGN) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RUB 158,455 million, down 4.3% from Q4 2024 and 17.9% year-over-year, reflecting lower sales volumes and prices amid high interest rates and slower business activity.

• EBITDA fell to RUB 19,758 million, a 15.3% decrease from Q4 2024 and 53.1% lower year-over-year, due to reduced revenue and cost inflation.

• Net profit dropped to RUB 3,138 million, down 73.7% from Q4 2024 and 86.8% year-over-year.

• Free cash flow was negative at -RUB 455 million, mainly due to lower sales profitability.

Financial highlights

• EBITDA margin was 12.5%, down from 14.1% in Q4 2024 and 21.8% in Q1 2024.

• Capital expenditures were RUB 20,803 million, a 29.7% decrease from Q4 2024 and 4.6% lower year-over-year.

• Net working capital to revenue ratio was 16.1%, nearly unchanged from Q4 2024, but up 0.8 p.p. year-over-year.

Outlook and guidance

• Q2 2025 is expected to see seasonal business activity recovery in Russia, supporting steel demand, though high interest rates will continue to weigh on demand.