Klöckner & Co SE

Q2 '26 reported EBITDA before material special effects was EUR 63 million. Operating cash flow was EUR 10 million and free cash flow was EUR 7 million. Gross profit was EUR 243 million versus EUR 320 million in Q2 '25, and gross margin declined to 14.4%. On a like-for-like basis excluding the divested 8 U.S. distribution sites, shipments increased 4.3% and sales rose 12.1% year over year. Segment EBITDA before material special effects was EUR 42 million in Kloeckner Metals Americas and EUR 20 million in Kloeckner Metals Europe. For full-year '26, management forecast a slight decline in shipments, a slight increase in sales, EBITDA before material special effects of EUR 170 million to EUR 250 million, and positive operating cash flow below full-year '25 levels.

Guido Kerkhoff said the quarter showed the company’s growth strategy is still working, with the divestment-adjusted business producing higher shipments and sales and Europe continuing its turnaround. He emphasized that the European segment’s improved profitability was driven by strategic repositioning and execution, while North America is benefiting from better market balance after Section 232 tariffs. His tone was constructive but cautious, repeatedly pointing to uncertainty from geopolitics and trade policy.

Oliver Falk highlighted that the favorable pricing environment continued into Q2, especially in the U.S., helping drive EBITDA before material special effects of EUR 63 million despite lower reported shipments. He broke out gross profit at EUR 243 million, gross margin at 14.4%, and noted the main drag was the Becker write-down; he also cited EUR 156 million of working capital improvement, EUR 10 million of operating cash flow, EUR 3 million of net CapEx, and EUR 7 million of free cash flow. Net financial debt rose from EUR 1.092 billion to EUR 1.108 billion, with dividends, leases, FX, and other items more than offsetting the quarter’s free cash flow.

Analyst questions focused on Q3 momentum, the conservatism of EBITDA guidance, the pace of Europe’s recovery, the Becker divestment timeline, the impact of ThyssenKrupp’s planned Accelis IPO, and the Worthington Steel transaction. Management said Q3 started in line with the strong Q2 trend, the guidance still reflects uncertainty, Europe’s improvement is tied more to Kloeckner’s repositioning than to TRQ changes, Becker should close within the fiscal year, the Accelis IPO should not materially change the competitive landscape, and the Worthington Steel transaction is proceeding as planned with delisting and the DPLTA process underway.