Salzgitter (SZG) Q1 2026 TU earnings summary

Executive summary

• Achieved strong Q1 2026 results with external sales stable at €2.3 billion year-over-year and significant improvement in profitability metrics, driven by higher contributions from equity investments and cost savings initiatives.

• EBITDA VX rose to €279.7 million (Q1 2025: €78.6 million), EBT VX to €179.1 million (Q1 2025: €-27.3 million), and consolidated net income reached €81.9 million (Q1 2025: €-34.6 million).

• Earnings per share improved to €1.49 from €-0.66, and ROCE VX increased to 11.6% from -0.5% year-over-year.

• The P28 profit improvement program delivered €43 million in cost savings in Q1, supporting the positive result.

• Preliminary Q1 2026 figures exceeded analyst expectations, with strong contributions from equity investment in Aurubis AG and improved results across Steel Production, Trading, and Technology units.

Financial highlights

• External sales: €2,345.1 million (Q1 2025: €2,329.5 million).

• EBITDA VX: €279.7 million (Q1 2025: €78.6 million); EBITDA: €195.9 million (Q1 2025: €78.6 million).

• EBT VX: €179.1 million (Q1 2025: €-27.3 million); EBT: €95.3 million (Q1 2025: €-27.3 million).

• Net income: €81.9 million (Q1 2025: €-34.6 million).

• Cash flow from operating activities: €77.0 million (Q1 2025: €-44.8 million).

• Aurubis AG equity investment contributed €147 million, up from €48 million, driven by metal price valuation effects.

• Total assets: €10,819.4 million (Q1 2025: €10,254.5 million).

Outlook and guidance

• Group sales for 2026 expected around €9.5 billion, EBITDA VX between €625–725 million, EBT VX between €200–300 million, and ROCE VX slightly above prior year.

• EBITDA VX guidance raised to €625–725 million (previously €500–600 million).

• EBT VX guidance increased to €200–300 million (previously €75–175 million).

• Steel Production unit anticipates higher sales and margins, with pre-tax results returning to positive territory.

• Steel Processing expects sales growth and improved, though still negative, pre-tax results.

• Trading unit forecasts slight sales increase, stable EBT, and moderately lower EBITDA.

• Technology unit projects moderate sales growth and a notable increase in EBITDA and pre-tax results.

• ROCE VX anticipated to be slightly higher year-over-year.