SSAB progresses on green steel strategy as earnings fall in 2025

SSAB has published its Annual Report 2025, highlighting continued progress in its transition to fossil-free steel production alongside lower earnings in a challenging market environment.

A key milestone in 2025 was the start of construction of a new steel mill in Luleå, Sweden, marking a central step in SSAB’s strategy to shift toward low-carbon production and higher-value products. The new facility, scheduled to start operations in 2029, will have an annual capacity of 2.5 million tonnes and will be based on electric arc furnace (EAF) technology, using recycled scrap and fossil-free sponge iron.

The project has been designated a strategic net-zero investment within the EU and is expected to reduce SSAB’s direct CO₂ emissions by up to 3 million tonnes per year once the existing blast furnace-based system in Luleå is phased out.

In parallel, the conversion of the Oxelösund site continues, with a new EAF expected to start operations in early 2027. This transition will reduce emissions at the site by up to 1.5 million tonnes annually.

SSAB is also expanding its portfolio of low-emission products. Its SSAB Zero™ steel — produced using recycled materials and fossil-free energy — has achieved the International Energy Agency’s near-zero emissions threshold, positioning the company among early movers in commercial low-carbon steel.

The company has secured several partnerships to support demand for decarbonised steel, including agreements with Volvo Cars, Toyota Material Handling Europe and Alfa Laval, reflecting growing industrial interest in low-emission materials.

Financially, SSAB reported lower results compared with the previous year. Revenue declined to SEK 96.2 billion (2024: SEK 103.4 billion), while EBITDA fell to SEK 10.2 billion (2024: SEK 12.1 billion). Operating income reached SEK 6.1 billion, and net income amounted to SEK 4.9 billion. Shipments increased slightly to 6.36 million tonnes.

Despite the weaker financial performance, SSAB maintained a strong balance sheet with net cash of SEK 11.6 billion and continued to generate solid operating cash flow of SEK 7.6 billion.

The report also highlights continued improvements in safety performance, with lost time injury frequency reaching a record low level. At the same time, CO₂ emissions (Scope 1) increased slightly year-on-year, reflecting current production structures ahead of the ongoing transition.

SSAB’s strategy focuses on repositioning its European operations toward premium steel products with higher margins and lower exposure to cyclical demand, supported by investments in fossil-free production technologies and downstream processing such as cold rolling and galvanizing.

Source and Photo: SSAB