Outokumpu (OUT1V) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA rose to EUR 65 million in Q1 2026, up from EUR 10 million in Q4 2025, driven by higher stainless steel deliveries, improved pricing, and favorable market dynamics, especially in the Americas and Europe.

• Stainless steel deliveries increased 27% group-wide, with Europe leading at 46% higher deliveries quarter-on-quarter, supported by CBAM and seasonal factors.

• The restructuring program and EVOLVE growth strategy advanced, including a U.S. pilot plant, expansion into specialty ferrochrome products, and new circular economy initiatives at the Kemi mine.

• Sustainability leadership recognized, with recycled material content above 95%, inclusion in Clean200, and multiple global awards.

• Financial position strengthened with net debt reduced to EUR 241 million and liquidity reserves at EUR 1.2 billion.

Financial highlights

• Adjusted EBITDA increased to EUR 65 million in Q1 2026, up from EUR 10 million in Q4 2025, mainly due to higher deliveries and improved pricing.

• Operating cash flow improved to EUR 85 million, and free cash flow was EUR 34 million.

• Net debt reduced to EUR 241 million, with a leverage ratio of 1.3x and net gearing at 7.1%.

• Cash and cash equivalents stood at EUR 378 million; liquidity reserves at EUR 1.2 billion.

• Q1 2026 sales were EUR 1,451 million, down 5% year-over-year but up 25% sequentially.

Outlook and guidance

• Adjusted EBITDA for Q2 2026 is expected to be higher than Q1 2026, supported by a forecasted 0–10% increase in stainless steel deliveries.

• Raw material-related inventory and metal derivative gains are anticipated in Q2.

• Market uncertainty persists due to the Middle East conflict, with potential inflationary impacts on prices and transportation.