Salzgitter (SZG) Q4 2025 earnings summary

Executive summary

• Achieved a return to profitability in 2025, with pretax results close to breakeven, supported by record performance in the Technology segment and strong earnings from the Aurubis investment, despite challenging market conditions and weak steel demand.

• Focused on restructuring, cost discipline, and portfolio management, including divestments such as DESMA and acquisitions like Thyrolf & Uhle.

• Advanced transformation projects, notably SALCOS phase one, with significant funding secured and construction on track.

• Achieved €129 million in cost savings through performance programs, doubling the prior year.

• Maintained a stable dividend proposal, reflecting ongoing investments and market headwinds.

Financial highlights

• Sales revenue for 2025 was €9.0 billion, down €1 billion year-over-year, mainly due to deconsolidation and lower steel segment turnover.

• Adjusted EBT was slightly positive at +2 million EUR, while reported EBT was €-28 million, both improved from 2024.

• EBITDA declined to €376 million from €445 million in 2024 due to lower sales.

• Net financial position/debt was -954 million EUR, reflecting high investment in decarbonization but better than forecasted.

• Gross operating cash flow exceeded €500 million, up nearly €100 million from the prior year.

• Result after tax was -70 million EUR, impacted by bond valuation and tax expenses; EPS at €-1.37.

Outlook and guidance

• 2026 expected to see continued headwinds but with slight improvement and positive momentum for 2027.

• Sales guidance for 2026 is €9.5 billion; adjusted EBITDA VX €500–600 million; pre-tax result VX €75–175 million.

• All business units expected to increase sales in 2026, with steel production and processing returning to profitability.

• Guidance excludes potential effects from the continuation of Hüttenwerke Krupp Mannesmann GmbH and earnings fluctuations from the Aurubis exchangeable bond.

• ROCE VX expected to be marginally above the previous year.