Salzgitter reports near break-even 2025 result amid weak steel markets

Salzgitter Group reported a near break-even pre-tax result for 2025, reflecting ongoing pressure on its steel-related businesses, partly offset by strong contributions from its technology segment and its stake in Aurubis.

Group sales declined to €9.0 billion (2024: €10.0 billion), driven by lower steel prices and portfolio changes. EBITDA fell to €376 million (2024: €445 million), while earnings before taxes improved significantly to €-28 million (2024: €-296 million). Net income stood at €-70 million.

The performance was shaped by weak demand in key customer sectors, high energy costs and intensified global competition. The group also pointed to disruptions in international trade flows linked to US trade policy.

A positive contribution came from the Technology Business Unit, which delivered a record result, as well as from Salzgitter’s investment in Aurubis, which contributed €180 million after tax.

At the same time, the company’s P28 efficiency program delivered cost savings of €129 million, exceeding original targets. CFO Birgit Potrafki said that “a 2025 pre-tax result virtually at breakeven highlights the effectiveness of the measures we have implemented,” adding that cost savings had “significantly outperformed” initial plans.

CEO Gunnar Groebler emphasized the need for internal measures in a challenging environment, noting that the company is focusing on “rigorous cost cutting, restructuring and active portfolio measures” in response to “sustained economic weakness” and “high” energy prices.

The group also continued to invest in its SALCOS® decarbonisation program, which contributed to an increase in net financial debt to €954 million (2024: €574 million).

For 2026, Salzgitter expects a moderate improvement in market conditions. The company forecasts sales of around €9.5 billion, EBITDA of €500–600 million and pre-tax earnings of €75–175 million.

Management also expects support from EU trade defence measures and carbon-related policies. Groebler noted that the company anticipates “support for investment reliability and competitiveness from the EU’s trade defense instruments and the carbon border adjustment mechanism.”

A dividend of €0.20 per share will be proposed for the 2025 financial year.

Source and Photo: Salzgitter