Public Joint Stock Company Magnitogorsk Iron & Steel Works (MAGN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was RUB 155,060 million, down 2.1% sequentially due to changes in sales structure.

• EBITDA for Q2 2025 rose 11.5% quarter-over-quarter to RUB 22,027 million, mainly from lower raw material prices.

• Net profit for Q2 2025 fell 21.1% sequentially to RUB 2,476 million.

• For H1 2025, revenue dropped 25% year-over-year to RUB 313,515 million, reflecting lower sales volumes and prices amid high interest rates and slower business activity.

• H1 2025 EBITDA declined 54.9% year-over-year to RUB 41,785 million; net profit dropped 88.8% to RUB 5,614 million.

Financial highlights

• Free cash flow was negative at RUB -4,252 million in Q2 2025, mainly due to increased capital expenditures.

• H1 2025 free cash flow was RUB -4,707 million, reflecting lower EBITDA.

• Capital expenditures in Q2 2025 were RUB 23,907 million, up 14.9% sequentially; H1 2025 capex was RUB 44,710 million, down 3.4% year-over-year.

Outlook and guidance

• Demand for metal products is expected to remain under pressure in Q3 2025 due to the negative impact of high key interest rates on business activity.