Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Outokumpu Oyj New — Q2 2025 Earnings Presentation
27 slides from Outokumpu Oyj's earnings presentation, Jul 31, 2025
Slide 1: Financial strength in weak market conditions
Financial strength in weak market conditions Outokumpu Q2 2025 results Kati ter Horst, President & CEO Marc-Simon Schaar, CFO July 31, 2025 Petronas Towers | Architect: César Pelli | Location: Kuala Lumpur, Malaysia
Slide 2: Disclaimer
2 July 31, 2025 Disclaimer This presentation contains, or may be deemed to contain, statements that are not historical facts but forward-looking statements. Such forward-looking statements are based on the current plans, estimates and expectations of Outokumpu’s management based on information avail
Slide 3: Adjusted EBITDA increased to EUR 75 million from Q1 while balance sheet strengthened
3 July 31, 2025 Adjusted EBITDA increased to EUR 75 million from Q1 while balance sheet strengthened Kati ter Horst, President & CEO
Slide 4: Own actions supported earnings
4 July 31, 2025 Own actions supported earnings • Stainless steel deliveries increased by 3% • Unclarity on tariffs and heightened geopolitical tensions Adjusted EBITDA totaled caused additional uncertainty in the market EUR 75 million • Safety performance improved to 1.2 TRIFR, recycled material con
Slide 5: European stainless steel industry needs urgently a level playing field
5 July 31, 2025 European stainless steel industry needs urgently a level playing field Third-country cold rolled imports1 into Europe, Third-country cold rolled imports2 into the North America, 1,000 tonnes 1,000 tonnes Import penetration Import penetration (in %) (in %) kt kt 27% 31% From rest of w
Slide 6: Increase in profitability supported by deliveries and raw material costs
6 July 31, 2025 Increase in profitability supported by deliveries and raw material costs Deliveries, kt Adjusted EBITDA quarter-on-quarter comparison1, EUR million Mainly driven by weaker USD and Driven by positive raw material higher maintenance Deliveries increased impacts, stainless steel prices
Slide 7: EBITDA run-rate improvement actions progressing towards the target
7 July 31, 2025 EBITDA run-rate improvement actions progressing towards the target Cumulative gross annualized EBITDA run-rate improvement, EUR million EUR 41 million EBITDA run-rate improvement reached in H1 2025, of which EUR 15 million in Q2 • Q2 mainly driven by BA Americas through continued opt
Slide 8: Safety performance improved to 1.2 TRIFR
8 July 31, 2025 Safety performance improved to 1.2 TRIFR Safety performance, TRIFR • Safety performance back on track at world- class level • High recycled material content and a solid progress towards SBTi climate target • Ranked 25th on Corporate Knights' Top 50 Sustainable European companies list
Slide 9: Our EVOLVE strategy for 2026–2030
9 July 31, 2025 Our EVOLVE strategy for 2026–2030 • 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 in
Slide 10: Strong balance sheet in turbulent markets
10 July 31, 2025 Strong balance sheet in turbulent markets Marc-Simon Schaar, CFO Heron Tower| London, UK
Slide 11: Strong balance sheet
11 July 31, 2025 Strong balance sheet • Cash and cash equivalents EUR 307 million, total liquidity reserves EUR 1.1 billion • Planned annual capex EUR 160 million for 2025 • Convertible bonds converted in July 2025 • Net debt decreased to EUR 169 million, mainly driven by the conversion of the conve
Slide 12: BA Europe
12 July 31, 2025 BA Europe’s stainless steel deliveries, 1,000 tonnes BA Europe Higher deliveries in a weak market environment • Stainless steel deliveries increased by 2% q-o-q • Imports increased to a high level of 27% due to US tariffs, putting notable pressure on stainless steel prices in Europe
Slide 13: BA Americas
13 July 31, 2025 BA Americas’ stainless steel deliveries, 1,000 tonnes BA Americas Higher U.S. tariffs supported local producers • Stainless steel deliveries increased by 7% Q-o-Q • Realized prices for stainless steel increased slightly • Despite of a slight decrease, the share of BA Americas adjust
Slide 14: BA Ferrochrome
14 July 31, 2025 BA Ferrochrome's deliveries, 1,000 tonnes BA Ferrochrome Deliveries increased while EUR/USD foreign exchange rate was unfavorable • Demand for our low-emission European Ferrochrome remained solid despite uncertainty created by the tariffs • Continued to benefit from the electricity
Slide 15: Working capital improvements and payment of convertible bond supported net debt
15 July 31, 2025 Working capital improvements and payment of convertible bond supported net debt Q2/25 cash flow Net debt development EUR million EUR million Driven by cash release from inventory
Slide 16: Own actions to support performance
16 July 31, 2025 Own actions to support performance Kati ter Horst, President & CEO Helix Bridge | Architects: Cox Architecture & Arup | Location: Marina Bay, Singapore
Slide 17: Accelerating the pace of change
17 February 8, 2024 July 31, 2025 Accelerating the pace of change • Strengthening our cost competitiveness further • Increasing short-term cost saving measures from EUR 50 million to EUR 60 million, to be achieved by the end of 2025 • Planning a new restructuring program, aiming at structural annual
Slide 18: Outlook for Q3 2025
18 July 31, 2025 Outlook for Q3 2025 Group stainless steel deliveries in the third quarter are expected to decrease by 5–15% compared to the second quarter, mainly in business area Europe, due to seasonality and market weakness. Meanwhile, pressure on realized stainless steel prices is expected to c
Slide 19: Strong foundation for the future
19 February 8, 2024 July 31, 2025 Strong foundation for the future • We continue to benefit from our geographically diversified footprint in Europe and the U.S. • Having the strongest balance sheet in the industry gives us resilience in the challenging market situation • EU Steel and Metals Action P
Slide 20: Thank you! Questions & answers
20 July 31, 2025 Thank you! Questions & answers Our achievements in sustainability have been globally recognized
Slide 21: Key financials for Q2 2025
21 July 31, 2025 Key financials Key figures Q2 2025 Q2 2024 Q1 2025 2024 for Q2 2025 Sales EUR million 1,486 1,540 1,524 5,942 EBITDA EUR million 39 56 47 162 Adjusted EBITDA EUR million 75 56 49 177 • Adj. EBITDA EUR 75 million EBIT EUR million -21 1 -7 -51 Adjusted EBIT EUR million 21 1 -5 -43 • N
Slide 22: Asian imports remained at a high level, putting pressure on stainless steel prices
22 July 31, 2025 Asian imports remained at a high level, putting pressure on stainless steel prices Transaction prices 304 stainless, USD/tonne* Nickel LME cash, USD/tonne June June Europe USA China Source: CRU Stainless Steel Flat Products Monitor June 2025 Nickel: London Metal Exchange (LME) Nicke
Slide 23: BA Europe's adjusted EBITDA was EUR 16 million in Q2 2025
23 July 31, 2025 BA Europe’s adjusted EBITDA was EUR 16 million in Q2 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Mainly driven by cost saving measures and lower energy Driven by increased costs Stainless steel realized prices, partly deliveries offs
Slide 24: BA Americas' adjusted EBITDA was EUR 29 million in Q2 2025
24 July 31, 2025 BA Americas’ adjusted EBITDA was EUR 29 million in Q2 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Driven by higher fixed Driven by lower raw costs, partly offset by material costs and slightly cost-saving measures higher realized pri
Slide 25: BA Ferrochrome's adjusted EBITDA was EUR 32 million in Q2 2025
25 July 31, 2025 BA Ferrochrome’s adjusted EBITDA was EUR 32 million in Q2 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Driven by stronger internal demand Driven by higher maintenance costs and lower fixed cost absorption Mainly driven by weaker USD 1
Slide 26: We continue our climate strategy to further reduce our emissions aligned with 1.5 degrees
26 July 31, 2025 We continue our climate strategy to further reduce our emissions aligned with 1.5 degrees – circularity and innovation at the core 2024 results 2016–2024 -32% tCO2/ton CS against 2016 baseline High recycled material content, low-emission energy, energy efficiency and incremental
Slide 27: Strong partnerships with customers to drive the green transition forward
27 July 31, 2025 Strong partnerships with customers to drive the green transition forward in stainless steel industry Up to 93% lower carbon footprint compared to the industry average* *Global average CO₂ emissions (2023): 7 kilos of CO₂e per kg of stainless steel (based on data provided by CRU and