Klöckner & Co increases operating income in 2025, outlook for 2026 positive

Steel service centre group Klöckner & Co reported a considerable increase in operating earnings for fiscal year 2025 despite challenging market conditions.

Operating income (EBITDA) before material special effects rose to €171 million, compared with €136 million in 2024. Shipments increased slightly to 4.53 million tonnes, while sales declined modestly to €6.4 billion due to lower steel prices and currency effects.

Net income improved significantly to €-53 million, compared with a loss of €-176 million in the previous year. The company generated positive operating cash flow of €110 million, marking the fourth consecutive year of positive operating cash flow, while free cash flow reached €105 million.

Based on the results, the management and supervisory boards plan to propose a dividend of €0.20 per share, unchanged from the previous year.

Strategic portfolio adjustments

During 2025, Klöckner & Co continued to focus on expanding its higher value-added processing and service activities. As part of this strategy, the group sold its Brazilian subsidiary and divested eight distribution sites in the United States, reallocating capital from pure distribution activities to processing and service centre operations.

At the same time, the company expanded its portfolio through acquisitions including Haley Tool & Stamping in the US and Ambo Stahl in Germany, strengthening its presence in sectors such as defence.

CEO Guido Kerkhoff said the strategic focus on higher value-added products and services, combined with the planned business combination with Worthington Steel, positions the company for further growth in Europe and North America.

Takeover bid by Worthington Steel

In January 2026, Klöckner & Co and Worthington Steel signed a business combination agreement. Worthington Steel subsequently launched a voluntary public takeover bid for all Klöckner shares at €11.00 per share.

After reviewing the offer, Klöckner’s management and supervisory boards stated that successful completion of the takeover would be in the best interest of the company and its stakeholders. The minimum acceptance threshold for the offer has been lowered to 57.5% of shares, and the acceptance period has been extended until March 26, 2026.

Outlook for 2026

For the current fiscal year, Klöckner & Co expects shipments to remain broadly stable despite the divestment of the US distribution sites. The company forecasts a considerable increase in EBITDA before material special effects and a further improvement in operating cash flow.

For the first quarter of 2026, EBITDA before material special effects is expected to range between €20 million and €60 million.

Klöckner & Co operates around 110 distribution and processing sites, mainly in North America and the DACH region, supplying more than 60,000 customers.

Source and Photo: Klöckner