As I write these comments, the EU and the U.S have just reached a trade agreement. This at least takes away some of the uncertainty and hopefully supports a better investment climate and boosts industrial production. For now, U.S. tariffs on European steel remain at 50%, and it is unclear how these discussions might continue.
In Europe, the stainless steel industry faces persistent challenges, including subdued demand, low-priced imports from Asia, and elevated energy costs. It is imperative that we intensify efforts to create a level playing field for European producers. With U.S. tariffs on imported steel currently at 50%, the European Commission must act with urgency to implement more effective safeguard measures against Asian imports and to ensure that the Carbon Border Adjustment Mechanism (CBAM) is robust and enforceable from its launch in early 2026. In parallel, we must accelerate the development of European lead markets for sustainable stainless steel. In summary, the importance of implementing the Steel and Metals Action Plan is growing by the day.
Access to critical minerals is a big topic in both Europe and the Americas. Our chrome mine in Finland – the only one in the EU – gives us a unique position in this landscape. Despite weak market sentiment, we are seeing growing demand for our sustainable ferrochrome, driven by geopolitical shifts. We have also secured access to other important metals, such as nickel and molybdenum, which are key raw materials in stainless steel production.
In the second quarter, we introduced EVOLVE, our new growth-focused strategy for the years 2026–2030. With this strategy, we are sharpening our strategy execution and investment allocation by classifying our businesses as either foundational or transformative. This approach clarifies the strategic role and priorities of each business, supporting long-term value creation and total shareholder returns.
While we continue to drive cost competitiveness and cash generation in sustainable stainless steel, we plan to grow through transformative investments in higher-growth, higher-margin, and less cyclical markets. We are currently conducting a feasibility study in Avesta, Sweden to explore opportunities in high-nickel alloys. During our Capital Markets Day in June, we also discussed our proprietary technology development that could revolutionize metal extraction methods.
During the second quarter, we continued to benefit from our strong market positions in both Europe and the U.S. However, the quarter was marked by uncertainty and heightened geopolitical tensions, leading to increased caution among our customers and across the value chain. Still, we were able to strengthen our balance sheet.
Our adjusted EBITDA reached EUR 75 million, while our stainless steel deliveries increased by 3% compared to the first quarter. The result was supported by our successful short-term cost-saving measures, which so far have delivered EUR 29 million of the targeted EUR 50 million in savings for 2025. We also made progress with our structural EBITDA run-rate improvement program, which now stands at a cumulative achievement of EUR 328 million compared to the target of EUR 350 million by the end of this year.
In business area Europe, adjusted EBITDA increased to EUR 16 million, and stainless steel deliveries were 2% higher compared to the previous quarter. The European market remained sluggish, and stainless steel prices were under pressure.
In business area Americas, adjusted EBITDA improved to EUR 29 million, and stainless steel deliveries increased by 7% quarter-on-quarter due to higher demand for domestically produced stainless steel.
In business area Ferrochrome, adjusted EBITDA was EUR 32 million. Demand for our European low-emission ferrochrome has remained solid, and we continue to benefit from energy optimization in Finland.
Looking ahead, it is evident that we need to accelerate the pace of change at Outokumpu to adapt more quickly to the market environment, especially in Europe. We have increased our short-term cost-saving measures from EUR 50 million to EUR 60 million, to be achieved by the end of 2025. In addition, we have started to plan a new restructuring program, aiming at structural annual cost-savings of EUR 100 million to be achieved by the end of 2027.
I am delighted that our safety performance is again back on track, with a TRIFR of 1.2 in the second quarter. We also maintained our very high recycled material content level of 97% and continued to make firm progress toward our SBTi climate target.
Finally, I would like to thank our employees for their commitment and achievements, our customers for their business and trust, our suppliers for their cooperation, and our shareholders for their continued support.