Salzgitter (SZG) Q4 2024(Media) earnings summary

Executive summary

• Strategy "Salzgitter AG 2030" advanced, focusing on circular economy, profitability, and customer-oriented growth.

• Reported a pre-tax loss of €296 million for 2024, mainly due to impairments and restructuring; adjusted pre-tax profit was €109 million, reflecting challenging market conditions and special items.

• Technology Business Unit achieved record profit; KHS delivered record results; investment in Aurubis AG contributed €184 million to earnings.

• Major transformation initiatives (SALCOS®) and cost-saving programs continued, with significant investments and progress in green steel production.

• Growth opportunities identified in wind energy, hydrogen networks, and defense sectors.

Financial highlights

• Revenue for 2024 at €10.0bn, down from €10.8bn in 2023; EBITDA at €445m vs. €677m prior year.

• EBT at -€296m (2023: €238m), but adjusted EBT positive at €109m; net income at -€348m (2023: €204m).

• ROCE at -3.4% (2023: 5.6%); dividend proposal of €0.20 per share (2023: €0.45).

• Net financial position at -€574m, reflecting planned transformation investments.

• Investments reached €899m (2023: €583m), with €401m for SALCOS® transformation.

Outlook and guidance

• 2025 revenue expected between €9.5bn and €10.0bn; EBITDA between €350m and €550m.

• Pre-tax result forecasted between -€100m and +€100m; ROCE slightly above prior year.

• Steel-related activities to remain subdued in H1 2025; Technology Business Unit anticipates continued strong performance.

• Management highlights significant uncertainties from market, input prices, FX rates, and regulatory risks.

• Ongoing focus on cost discipline, liquidity, and transformation investments.