Klöckner & Co (KCO) investor relations material

Executive summary

• Q2 2026 saw a decrease in reported shipments due to the sale of eight US distribution sites, but like-for-like shipments increased by up to 4.3% and sales rose 12.1% on an adjusted basis, driven by higher average prices.

• EBITDA before material special effects was €63 million in Q2 2026, in the upper half of guidance, with Klöckner Metals Europe contributing significantly; for H1 2026, EBITDA before special effects totaled €109 million.

• Net income for Q2 2026 was -€268 million to -€269 million, mainly due to a €151 million impairment charge related to the Becker Group.

• Net financial debt increased to €1,108 million, driven by negative operating cash flow and dividend payments.

• Worthington Steel completed a public takeover, now holding about 62% of shares, with a delisting offer underway.

Financial highlights

• Sales for Q2 2026 were €1.7 billion, up 3% year-over-year; adjusted for divestments, sales rose by 12.1%.

• Gross profit declined to €243 million, with a margin of 14.4%, mainly due to a write-down at Becker.

• EBITDA before material special effects was €63 million in Q2 and €109 million in H1; reported EBITDA was -€108 million due to -€171 million in special effects.

• Net income for Q2 2026 was -€269 million, with EPS at -€2.70.

• Free cash flow was €7 million in Q2 2026; operating cash flow was €10 million.

Outlook and guidance

• Full-year 2026 guidance expects a slight decline in shipments but a slight increase in sales compared to 2025.

• EBITDA before material special effects is forecasted at €170–250 million for 2026.

• Operating cash flow is expected to remain positive but below 2025 levels.

• Q3 2026 started strong, in line with Q2 performance.