Salzgitter (SZG) investor relations material

Executive summary

• Achieved strong H1 2026 results with significant earnings improvements across all business segments, supported by the P28 profit improvement program and high Aurubis AG investment contribution, despite challenging market and geopolitical conditions.

• Completed full acquisition of Hüttenwerke Krupp Mannesmann (HKM), enabling strategic control, advancing decarbonization, and reinforcing the steel business position.

• Regulatory tailwinds from EU trade defense measures and CBAM supported price levels and reduced imports.

• Active portfolio management included the sale of Klöckner DESMA Elastomertechnik.

Financial highlights

• External sales for H1 2026 were €4.6 billion, slightly down year-over-year; EBITDA VX rose to €459.0 million (H1 2025: €116.8 million), and EBT VX reached €257.6 million (H1 2025: €-83.8 million).

• After-tax result improved to €43.5 million (H1 2025: €-88.9 million); EPS at €0.74 (H1 2025: €-1.68).

• Net financial position stable at €-792 million at June-end, with cash and cash equivalents at €1,202.8 million.

• Working capital increased to €2,642 million, mainly from higher accounts receivable.

• Investments for H1 at €88 million; full-year expected at €650 million, including HKM-related CAPEX.

Outlook and guidance

• FY 2026 sales expected around €10 billion; EBITDA VX between €725–825 million; EBT VX between €325–425 million; ROCE VX anticipated marginally above previous year.

• Full consolidation of HKM expected to add mid-double-digit million euro to EBITDA VX and EBT VX, and mid-triple-digit million euro to sales.

• Positive trend expected to continue in H2, but at a slower pace due to seasonality and one-off effects in H1.

• Steel demand seen stabilizing at a low level in 2026, with moderate recovery anticipated in 2027.