- Steel and steel-related activities impacted by challenges in the political and economic environment
- Technology Business Unit and the participating investment in Aurubis AG bolster the result
- P28 Performance Program generates an additional earnings contribution of € 48 million in the first half year
In the first half of 2025 that was characterized by geopolitical tensions and trade policy conflicts, along with weak economic momentum, the Salzgitter Group recorded earnings before interest, taxes, depreciation and amortization of € 116.8 million (EBITDA) and a pre-tax result of € – 83.8 million. The Technology Business Unit and the participating investment in Aurubis AG accounted for at equity (IFRS accounting) once again delivered markedly positive earnings contributions. Thanks to cost adjustments and restructuring measures, the Trading Business Unit achieved a turnaround with a marginally positive result. By contrast, the results of the Steel Production and Steel Processing business units reflected the extremely challenging political and economic framework conditions.
In the first six months of the current financial year, the Salzgitter Group recorded external sales of € 4.7 billion (H1 2024: € 5.2 billion), EBITDA of € 116.8 million (H1 2024: € 233.6 million) and € – 83.8 million in earnings before taxes (H1 2024: € + 11.5 million). The result includes a contribution of € 71.5 million from Aurubis AG (IFRS accounting), an investment included at equity (H1 2024: € 70.6 million). In addition, an amount of € – 79.9 million in charges from the reporting-date-related valuation of derivative positions (H1 2024: € + 10.8 million) was included, along with non-recurrent effects of € – 10.0 million earmarked to cover impairment risks from planned portfolio streamlining (H1 2024: € – 20.0 million). The after-tax result came in at € – 88.9 million (H1 2024: € – 18.6 million), which brings earnings per share to € – 1.68 (H1 2024: € – 0.40). Return on capital employed (ROCE) stood at € – 1.6 % (H1 2024: 1.9 %). The equity ratio remained at a very sound 42.2 % (H1 2024: 45.6 %).
Gunnar Groebler, Salzgitter AG’s Chief Executive Officer, commented as follows:
“In an extremely difficult geopolitical environment, there are three factors we have placed our emphasis on: Firstly, we continue to ensure rigorous cost and performance management. We have achieved a great deal in the past months – our aspiration is, however, to leverage the full potential in all areas of our company. Secondly, we are forging a practical, rational and reliable bridge in the direction of decarbonization. While others may prefer a nostalgic look in the rear mirror, our technological focus with SALCOS® is set firmly on the future. The modular SALCOS® structure allows us to make the right investment decisions at the right time, also in a tight market environment. Thirdly, we are currently sending a very clear message to policymakers about what will happen if Germany can no longer rely on a resilient steel industry. The impact goes far beyond key industries such as the automotive and construction sectors. The policymakers themselves have manifestly addressed the topics of defense and infrastructure. Consequently, the moment in time has come to secure innovative steel from domestic production by introducing a new, effective trade policy instrument.”
Chief Financial Officer Birgit Potrafki elaborates further:
“The results of the Steel Production, Steel Processing and Trading business units have been unsatisfactory in the first six months and are not viable as such over the long term. Consequently, we are rigorously expediting internal measures aimed at improving profit and securing liquidity - yielding results that are already visible. Under our P28 Performance Program, we generated an additional earnings effect of € 48 million in the first six months. Backed by measures geared to securing liquidity, net financial debt developed better than originally anticipated and, by the end of the year - quite apart from the record transformation investments - should be significantly lower than the amount of € 1.5 billion forecast in the first quarter. The restructuring measures introduced are delivering the first positive effects, particularly in the Trading Business Unit. Last but not least, we are rapidly moving forward with our active portfolio management, as most recently evidenced by the sale of DESMA Schuhmaschinen GmbH.”
External sales by business unit (EUR million):
| |
H1 2025 |
H1 2024 |
| Steel Production |
1,704.7 |
1,815.5 |
| Steel Processing |
597.6 |
859.3 |
| Trading |
1,430.1 |
1,603.8 |
| Technology |
844.8 |
871.3 |
| Industrial Participations / Consolidation |
87.4 |
93.3 |
| Group |
4,664.7 |
5,243.2 |
EBITDA by business unit (EUR million):
| |
H1 2025 |
H1 2024 |
| Steel Production |
65.6 |
101.2 |
| Steel Processing |
-39.8 |
-37.0 |
| Trading |
25.2 |
16.6 |
| Technology |
69.5 |
70.9 |
| Industrial Participations / Consolidation |
-3.7 |
81.8 |
| Group |
116.8 |
233.6 |
Earnings before taxes (EBT) by business unit (EUR million):
| |
H1 2025 |
H1 2024 |
| Steel Production |
-55.6 |
-22.0 |
| Steel Processing |
-63.4 |
-72.5 |
| Trading |
10.9 |
-0.8 |
| Technology |
54.7 |
52.7 |
| Industrial Participations / Consolidation |
-30.3 |
54.1 |
| Group |
-83.8 |
11.5 |
Outlook
We anticipate the following for the Salzgitter Group in the financial year 2025:
- sales of between € 9.0 billion and € 9.5 billion,
- EBITDA of between € 300 million and € 400 million,
- a pre-tax result of between € – 100 million and € 0 million, as well as
- a return on capital employed (ROCE) marginally above the year-earlier figure.
As in recent years, please note that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as exchange rate fluctuations, may considerably affect business performance in the course of the 2025 financial year. The resulting impact on performance may be within a substantial range, either to the positive or to the negative.
The complete report released on the results of the first half of 2025 can be viewed at: https://www.salzgitter-ag.com/en/investor-relations/news-publikationen.html.
Contact:
Markus Heidler
Head of Investor Relations
Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter
Phone +49 5341 21-6105
Fax +49 5341 21-2570
E-Mail
ir@salzgitter-ag.de