Swiss Steel Group (STLN) H1 2024 earnings summary

Executive summary

• Revenue declined 19.9% year-over-year to €1,379.2 million, with sales volume down 6.2% to 629 kilotons, reflecting weak demand in core markets and the derecognition of Ascometal.

• Achieved strategic milestones, including major divestments, a €285.8 million capital increase, significant deleveraging, and headcount reduction to 7,565.

• EBITDA rose to €71.7 million, supported by €92.6–93 million in one-time gains from asset divestments and insurance settlements, but adjusted EBITDA was negative at €-20.9 million.

• Completed the first phase of the SSG 2025 strategy, focusing on portfolio optimization, cost structure improvements, and sustainability leadership, including SBTi validation.

• Focused on strengthening liquidity, increasing resilience, and securing sustainable profitability.

Financial highlights

• Sales volume in H1 2024 was 629 kilotons, down 6.2% year-over-year (excluding Ascometal).

• Revenue fell 19.9% to €1,379.2 million; average sales price dropped 10.8% to €2,271 per ton.

• Gross profit declined 18.7% to €447.2 million; gross margin improved to 32.4% from 29.6% year-over-year.

• Free cash flow was negative at €-112.3 million, mainly due to net working capital ramp-up.

• Net working capital increased to €918.1 million, up 20.1% year-over-year.

Outlook and guidance

• Market conditions expected to remain subdued through 2024, with growth likely deferred to 2025.

• Focus remains on production excellence, cost control, and operational efficiency, with continued implementation of the SSG 2025 strategy and Green Steel market opportunities.