Outokumpu announces its new strategy, EVOLVE, to drive growth and shareholder value, with updated financial targets and dividend policy

Outokumpu announces its new strategy, EVOLVE, to drive growth and shareholder value, with updated financial targets and dividend policy

 

Outokumpu announces its new growth-focused strategy for 2026–2030. The company will further sharpen its strategic execution by classifying businesses in order to allocate investments within the group as either foundational or transformative – clarifying strategic roles and priorities to support long-term value creation.

The company will leverage its competitive advantages and improve resilience to cyclicality by building a stronger portfolio and differentiating into transformative areas. Outokumpu aims to expand through targeted organic investments in higher-growth, higher-margin, and less cyclical markets. In addition, the company will explore selective inorganic opportunities where there is strong strategic alignment and clear value creation potential.

As part of the new strategy, Outokumpu targets to increase its value by

• Driving cost competitiveness and cash generation in sustainable stainless steel
• Growing profitably in advanced materials and alloys
• Revolutionizing value creation with innovative materials and technologies  

Outokumpu has a solid financial position, geographically diversified assets and strong market positions in both Europe and the Americas. The company operates the only chrome mine within the EU area, which serves as the backbone for ferrochrome production and other value-added products. Over recent years, Outokumpu has significantly strengthened its through-the-cycle performance and now holds the strongest balance sheet in the industry. Combined with its sustainability leadership and secure access to critical raw materials, these advantages provide a robust foundation for future growth and long-term value creation.

Foundational

Outokumpu is taking targeted actions to improve the performance of its sustainable stainless steel operations in Europe and the Americas, aiming to enhance competitiveness, resilience, and cash flow over the cycle. The role of foundational businesses is to provide cash for growth in other areas. Therefore, capital expenditure will be limited to maintenance and mandatory and targeted investments into competitiveness​ and smart decarbonization​ with an internal rate of return (IRR) threshold of 15%. The enablers for the foundational businesses are continuous focus on cost competitiveness, leveraging sustainability leadership and securing supply of critical raw materials.

In business area Europe, Outokumpu is optimizing its operational footprint and enhancing production capabilities. The company plans to invest approximately EUR 200 million in a new annealing and pickling line in Tornio, Finland. At the same time, it intends to close two less competitive lines in Krefeld, Germany. Once the new line is operational, this set-up would generate annual EBITDA improvements in a magnitude of EUR 70 million through the cycle. The aim is to maximize the benefits from the fully integrated, cost-efficient operations in Tornio, Finland and further leverage the long-term structural advantage of clean and price competitive energy in the Nordics to reach cost savings and strengthen Outokumpu’s competitiveness in Europe. Due to the various cost efficiency improvement initiatives in business area Europe, Outokumpu will record in the second quarter of 2025 an adjustment item of approximately EUR 35 million related to a restructuring provision and asset impairments. The cash flow impact is approximately EUR 25 million for years 2025–2028.

In business area Americas, the focus is on strengthening capabilities and competitiveness through operational efficiency, a focused commercial strategy, and disciplined investments.

Transformative

In the transformative part of the new strategy, Outokumpu aims to unlock high-value growth opportunities with a targeted minimum internal rate of return (IRR) of 20%. The aim is to expand into higher-growth, higher-margin, and less cyclical markets, in which Outokumpu has a unique position to win. Outokumpu has identified three transformative areas.

The global advanced materials and alloys market shows a strong growth potential. Outokumpu has started a feasibility study to assess a potential investment in its melt shop in Avesta, Sweden to enable further expansion into high-nickel alloys. Simultaneously, the company is also exploring inorganic options to grow within this area.

The U.S. market remains attractive in the long-term and Outokumpu continues to study further growth opportunities beyond standard stainless steel.

Within business area Ferrochrome, Outokumpu is increasing value from its chrome mine and repositioning from an internal supplier to an unrestricted ​market player. As a low-emission ferrochrome producer and the owner of the only chrome mine in the EU area, the company aims to further leverage its distinctive position. The unique geopolitical position provides significant value creation possibilities accelerated by innovation to create new value streams.

As part of the transformative initiatives, Outokumpu is capitalizing on proprietary technology to produce ​low-CO₂ metals and its own chrome mine offers the ideal launchpad. The company aims to establish a platform for premium products, first focusing on chromium materials, including enriched ferrochrome and high-purity chromium metal. Through this, Outokumpu is entering the high-grade ferrochrome market with a significant price premium. The company is unlocking value through innovation, supported by a technology platform that is also scalable to other strategic metals within the stainless steel value chain – and potentially beyond.

 

Financial targets and capital allocation

Outokumpu is committed to retaining a healthy balance sheet. The company’s strategic priorities – balancing resilience, growth, and dividends – will guide capital allocation, resulting in competitive total shareholder returns.

Capital allocation priorities

• Operational health: mandatory and maintenance capital expenditure
• Competitiveness and smart decarbonization capital expenditure
• Transformative capital expenditure and mergers and acquisitions (M&A)
• Dividend
• Share buybacks

Financial targets for 2026–2030

• Net debt to EBITDA ratio of 1.0x ​with disciplined financial flexibility to support strategic investments and manage cyclical market conditions, allowing it to only temporarily exceed 2.0x
• EBITDA run-rate improvement of EUR 250 million through foundational initiatives

 

Dividend policy

Outokumpu aims to pay a stable and growing dividend over time, while maintaining the flexibility to invest in transformative initiatives that yield a minimum internal rate of return (IRR) of 20% and accounting for market cyclicality.

 

The new strategy, EVOLVE, does not impact Outokumpu’s current segment reporting.

 

Outokumpu will arrange a Capital Markets Day 2025 webcast and conference call tomorrow, June 11, 2025, at 1.00 pm EEST (11.00 am BST).

To join our Capital Markets Day, please follow the live webcast at https://outokumpu.events.inderes.com/cmd-2025/register.

To ask questions, please participate in the conference call by registering at https://events.inderes.com/outokumpu/cmd-2025/dial-in.

After registration you will receive a 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.

 

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669

Media: Päivi Allenius, SVP – Communications and Brand, tel. +358 40 753 7374, or Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com