Outokumpu interim report January–March 2026 – More favorable market dynamics underpinned higher adjusted EBITDA

Outokumpu interim report January–March 2026 – More favorable market dynamics underpinned higher adjusted EBITDA

Highlights in Q1 2026

• Adjusted EBITDA increased from the previous quarter to EUR 65 million supported by improved profitability in business area Europe driven by higher delivery volumes, and in business area Americas driven by a higher average stainless steel price.
• Stainless steel market activity improved, driven by seasonal factors and CBAM‑related effects. Deliveries increased by 27% to 465 thousand tonnes from the previous quarter.
• Ferrochrome market remained balanced, supporting price increases and favoring Outokumpu’s low‑emission European offering. Deliveries rose 17% to 110 thousand tonnes from the previous quarter.
• Operating cash flow strengthened to EUR 85 million mainly due to stronger result, with working capital release providing additional support. Net debt decreased to EUR 241 million.
• Implementation of the restructuring program is progressing as planned, targeting annual cost savings of EUR 100 million by the end of 2027, of which approximately half is expected in 2026.
• EVOLVE growth strategy progressing:
  • Construction of the pilot plant in the U.S. to scale up proprietary technology for the production of low-CO₂ enriched ferrochrome and chromium metal is advancing, planned to be operational in the first half of 2027.
  • Development of higher-margin specialty ferrochrome products progressing.
  • Circular economy ecosystem launched at Kemi mine to use side streams.
  • Tornio annealing and pickling line investment review ongoing.
  • Avesta melt shop feasibility study ongoing to allow expansion into high-nickel alloys. 

Key figures (EUR million, or as indicated)	Q1/26	Q1/25	Q4/25	2025
Sales	1,451	1,524	1,160	5,468
EBITDA	59	47	-27	88
Adjusted EBITDA 1)	65	49	10	167
Operating profit (EBIT)	3	-7	-83	-134
Net result for the period	-6	-18	-65	-137
Earnings per share, EUR	-0.01	-0.04	-0.14	-0.31
Operating cash flow	85	-10	64	79
Net debt	241	252	265	265
Net debt to adjusted EBITDA	1.3	1.3	1.6	1.6
Stainless steel deliveries, 1000 tonnes	465	470	365	1,751
Ferrochrome deliveries, 1000 tonnes	110	95	94	395

1. Adjusted EBITDA = EBITDA – Items affecting comparability.
    

President & CEO Kati ter Horst

In the first quarter, stainless steel market dynamics improved, driven by seasonality and the Carbon Border Adjustment Mechanism (CBAM) impacts in Europe. Since the introduction of CBAM in January, there is a clear carbon price on stainless steel imports at the EU border, which shifts demand towards European scrap-based production with a lower carbon footprint. Consequently, we have seen the share of cold-rolled stainless steel imports to the EU nearly halve. It is important to extend CBAM to downstream steel-intensive goods to ensure a level playing field for our customers and to prevent carbon leakage. We support the European Commission’s plan to expand CBAM to downstream customer segments. The European Commission, Parliament and Council have agreed on steel safeguard measures which will come into force on July 1, 2026, and protect the European steel industry from global overcapacity.

So far, the direct effects of the conflict in the Middle East on Outokumpu’s result have been limited and mainly related to higher freight costs, which are expected to increase further in the second quarter. On the energy side, our hedging and high share of Nordic low-carbon electricity help mitigate the impact. However, if the conflict were to prolong, it could weigh on economic growth, end-use demand for our products, and put upward pressure on energy costs.

In the first quarter, our adjusted EBITDA increased to EUR 65 million supported by 27% higher stainless steel delivery volumes compared to the fourth quarter. While profitability improved in business area Europe on the back of the higher delivery volumes, Outokumpu’s results continued to be negatively impacted by the backlog related to the implementation of the new supply-chain solution. Business area Americas achieved an excellent result, supported amongst other factors by a higher average stainless steel price. Business area Ferrochrome continued its solid performance thanks to its low-emission European offering. Deliveries increased by 17% compared to the previous quarter. The ferrochrome market remained balanced which supported prices. Group operating cash flow strengthened, mainly due to stronger result and working capital release.

We are advancing our EVOLVE growth strategy by developing higher-margin specialty products in our Ferrochrome business. These new products also broaden our customer portfolio outside stainless steel. During the quarter we progressed through successful production campaigns supplying both internal and external customers. The construction of our pilot plant/ in New Hampshire, U.S., to scale up proprietary technology for the production of low-CO₂ enriched ferrochrome and chromium metal, is progressing as planned and expected to be operational during the first half of 2027. Outokumpu also announced the launch of a circular economy ecosystem at the Kemi mine to support the utilization of mining side streams and resource efficiency. Further, our group-wide restructuring program will deliver EUR 100 million savings by the end of 2027, of which we expect to realize approximately half in 2026.

Outokumpu is committed to working towards zero safety incidents. In 2026, the safety roadmap focuses on safe management of contractors, the safest way to isolate work environments from hazardous energies, and the permit-to-work process. In Q1 2026, the total recordable incident frequency rate was 1.8 – slightly above our target of 1.5 for 2026, indicating improvement potential in preventive work such as risk identification.

Lastly, I want to thank our employees for their dedication and drive to advance our strategic goals, our customers for their loyalty and business, our suppliers for their valuable collaboration, and our shareholders for their continued confidence.

Outlook for Q2 2026

Outokumpu's adjusted EBITDA improvement in the second quarter of 2026 is expected to benefit mainly from increasing stainless steel delivery volumes, which are forecast to rise by 0–10% from the first quarter of 2026.

With the current raw material prices, raw material-related inventory and metal derivative gains are forecasted to be realized in the second quarter.

Guidance for Q2 2026

Adjusted EBITDA in the second quarter of 2026 is expected to be higher compared to the first quarter of 2026.

A live webcast and conference call today, May 12, at 2.30pm EEST

A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 2.30 pm EEST at: https://outokumpu.events.inderes.com/q1-2026 hosted by President and CEO Kati ter Horst and CFO Marc-Simon Schaar.

To ask questions, please participate in the conference call by registering at https://events.inderes.com/outokumpu/q1-2026/dial-in. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.

All result materials, a link to the webcast and later its recording will be available at www.outokumpu.com/en/investors.

For more information:

Investors: Johan Lindh, VP, Investor Relations, tel. +358 40 837 3994
Media: Päivi Allenius, SVP, Communications and Public Affairs, tel. +358 40 753 7374, or Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com

Outokumpu Corporation