Salzgitter (SZG) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a significant decline in sales and earnings, with external sales dropping to €2.33 billion from €2.68 billion year-over-year, mainly due to the divestment of Mannesmann Stainless Tubes, lower selling prices, and reduced trading volumes.

• Adjusted earnings before taxes were roughly break-even, but non-operating items, including a €23 million derivative valuation loss and €10 million risk provision, led to a pre-tax loss of €27.3 million and a net loss after tax of €34.6 million.

• Technology and Aurubis AG contributed positively, while Steel Production and Processing underperformed due to subdued demand and deconsolidation effects.

• Cash and cash equivalents decreased to €892 million, impacted by negative cash flow and exchange rate effects.

• Earnings per share dropped to €-0.66, and ROCE fell to -0.5%.

Financial highlights

• External sales fell to €2,329 million, down €348 million year-over-year.

• EBITDA dropped to €78.6 million from €126.4 million; earnings before tax at -€27.3 million versus €17.2 million prior year.

• Net loss after tax of €34.6 million, down from €15 million profit in Q1 2024.

• Cash flow from operating activities improved to €-44.8 million from €-142.6 million year-over-year.

• Net financial position at €-624 million at quarter-end, a decline from year-end.

Outlook and guidance

• 2025 sales expected between €9.5–10.0 billion, EBITDA €350–550 million, and pre-tax result between -€100 million and +€100 million; ROCE anticipated to be slightly higher year-on-year.

• Sales and earnings guidance for 2025 is confirmed, with potential positive effects from higher steel prices expected in the second half.

• Net debt is guided to be between minus €1.5 billion and minus €2 billion by year-end, likely closer to minus €1.5 billion.

• Infrastructure-related orders are anticipated but not yet reflected in concrete order intake.

• Forecasts are subject to high uncertainty from price, input costs, capacity, and exchange rates.