Feralpi increases steel output and completes major investment cycle

Feralpi Group increased steel production, revenues and EBITDA in 2025 while completing a three-year investment programme worth more than €500 million. The Italian steelmaker also reported that renewable sources accounted for 56% of its energy use during the year, exceeding its previous 2030 target.

The results came amid continued weakness in European steel demand, high energy costs and geopolitical uncertainty. Feralpi nevertheless increased production by 4.7% year-on-year to 2.7 million tonnes, while revenues rose by 3% to €1.7 billion.

Earnings improve despite investment costs

EBITDA reached €87.2 million in 2025. Following depreciation and amortization of €71.6 million, partly reflecting the group's recent investment programme, Feralpi reported a small positive net result of €401,000.

Net financial debt increased to €196.9 million from €155.5 million a year earlier, mainly due to investment spending. International markets continued to account for a significant share of the business, generating 61% of group revenues, including 9.4% from outside the EU.

Feralpi's performance contrasted with a challenging wider market. According to figures cited by the company, European crude steel production declined by 2.6% in 2025, while German output fell by 8.6%. Italian production increased by 3.6% to 20.7 million tonnes but remained more than 15% below its 2021 level.

More than €115 million invested in 2025

Feralpi invested €115.7 million during the year, with more than 80% allocated to projects linked to environmental, social and governance objectives.

One of the main projects was the ramp-up of the new rolling mill at Feralpi Stahl in Riesa, Germany. The direct-emission-free facility can produce coils weighing up to eight tonnes.

At its Italian operations, Feralpi completed an electro-conduction heating system at Rolling Mill 2, designed to reduce natural gas consumption and direct CO2 emissions while improving charging efficiency.

The group also expanded the use of digital technologies, including AI-supported vision and logistics systems for scrap handling and predictive models for steelmaking process control.

Renewable energy target reached early

Feralpi reported that renewable sources covered 56% of its energy consumption in 2025, already exceeding its target of at least 50% by 2030.

The company has also received validation from the Science Based Targets initiative for its longer-term emissions targets. Feralpi aims to reduce specific Scope 1, 2 and 3 emissions covered by the iron and steel sector framework by 90% by 2050 compared with 2022 levels.

More than 98% of the material used by the group is recycled, while 93% of production residues are directed into circular processes. Specific water consumption has declined by 36.5% compared with 2022.

Focus shifts to returns from new capacity

With the major investment cycle completed, Feralpi is positioning its upgraded production base to respond to future demand, including the developing market for lower-emission steel.

"For our Group, 2025 was a year in which we achieved the industrial structure we had set for ourselves in our business plan," Chairman Giuseppe Pasini said.

Looking ahead, Pasini pointed to the potential offered by the group's recent investments despite continued market uncertainty: "Thanks to the investments completed and a cutting-edge production structure, we have built the best conditions to seize every opportunity that the markets will be able to offer, including those related to low-impact steels."

Feralpi also continued several R&D programmes focused on reducing the environmental impact of steel production. These include projects targeting slag and residue recovery, alternative electric billet-heating technologies, renewable energy use and the replacement of fossil carbon in steelmaking processes.

Source: Feralpi, Photo: Fotolia