Public Joint Stock Company Magnitogorsk Iron & Steel Works (MAGN) Q4 2025 earnings summary

Executive summary

• The company maintained a strong market position despite a challenging macroeconomic environment, with a focus on operational efficiency, sustainability, and technological innovation.

• Production of steel decreased by 9.2% year-over-year to 10.16 million tons, and sales of metal products fell by 7.2% to 9.85 million tons, reflecting weak demand and high interest rates.

• The company continued major investments in modernization, environmental projects, and social infrastructure, including the launch of a new coke battery and expansion of the “Attraction” urban resort.

• The board reaffirmed its commitment to high standards of corporate governance, transparency, and a balanced dividend policy.

Financial highlights

• Revenue declined by 20.6% year-over-year to 609,865 million RUB due to lower sales volumes and prices.

• EBITDA dropped by 47.2% to 80,757 million RUB, with EBITDA margin at 13.2% (down 6.7 p.p.).

• Net profit was 21,059 million RUB, a significant decrease from the previous year.

• Free cash flow fell by 82% to 6,556 million RUB.

• Capital expenditures totaled 89,921 million RUB, down 9% year-over-year.

• Net debt/EBITDA ratio remained negative, reflecting a strong balance sheet.

Outlook and guidance

• The company plans to reduce capital expenditures in 2026 and continue investment in machine-building and digitalization projects.

• Strategic priorities include further efficiency gains, expansion in high-tech product segments, and continued focus on environmental and safety improvements.

• Targets for 2026 include further reduction in injury rates (LTIFR) and emissions, as well as land reclamation.