Salzgitter (SZG) Q4 2024 earnings summary

Executive summary

• 2024 was marked by challenging market conditions and strong headwinds, especially in steel, but operational resilience and strategic progress were maintained through transformation initiatives and performance programs.

• Significant one-time effects, including €400 million in write-offs and restructuring, led to negative EBT, but underlying operational performance and Technology unit results remained positive.

• Strategic focus areas included circular economy, profitability, growth, customer-oriented solutions, and investments in green steel transformation such as SALCOS®.

Financial highlights

• Sales declined to just above €10 billion, mainly due to lower steel prices and reduced external sales volumes; EBITDA reached €445 million, exceeding guidance, while EBIT was negative at -€296 million due to one-time effects.

• Operational result excluding one-time effects was €109 million, driven by strong technology sector performance.

• Cash flow from operating activities was €408 million, supported by stringent working capital management.

• Net financial position ended at -€574 million, reflecting planned investments and transformation.

• Dividend proposal of €0.20 per share continues stable payout policy.

Outlook and guidance

• 2025 expected to be another year of peak spending, with net CapEx slightly above 2024 after subsidies.

• Management guidance for 2025: sales between €9.5–10 billion, EBITDA €350–550 million, and EBT between -€100 million and +€100 million.

• ROCE anticipated to improve year-over-year, but significant uncertainties remain from price, input costs, and capacity utilization.

• Sufficient demand expected to utilize capacity, with gradual recovery in sections and potential improvement in steel processing and trading as market conditions stabilize.