Outokumpu Oyj

Q1 adjusted EBITDA was EUR 65 million, up from a very low level in Q4. Operating cash flow was EUR 85 million, free cash flow was EUR 34 million, net debt was EUR 241 million, leverage was 1.3x, and total liquidity reserves were EUR 1.2 billion. Group deliveries were 27% higher, stainless steel deliveries in Europe rose 46% quarter-on-quarter, and ferrochrome deliveries increased 17% versus Q4. For Q2 2026, Outokumpu guided for adjusted EBITDA to be higher than Q1, with stainless steel delivery volumes expected to increase by 0% to 10% sequentially; management also said raw material-related inventory and metal derivative gains are expected to be realized in Q2. CapEx guidance for 2026 remains EUR 200 million, with about half for maintenance investments.

Kati ter Horst said the quarter benefited from clearly more favorable market dynamics, especially in Europe, where CBAM is reducing imported stainless steel share and supporting lower-carbon local supply. She emphasized that end-demand is still broadly unchanged, but activity is improving in pockets such as data centers and energy-related demand. Her tone was constructive and strategic, highlighting progress on the EUR 100 million restructuring program and the EVOLVE growth strategy, including the U.S. pilot plant and a push into higher-margin ferrochrome products.

Marc-Simon Schaar focused on profitability improvement, cash conversion, and capital discipline. He pointed to Q1 adjusted EBITDA of EUR 65 million, operating cash flow of EUR 85 million, free cash flow of EUR 34 million, net debt of EUR 241 million, leverage of 1.3x, and liquidity reserves of EUR 1.2 billion. He also noted that 2026 CapEx guidance is unchanged at EUR 200 million, with approximately half tied to maintenance, and said working capital improved despite higher activity levels.

Analysts pressed on the Q2 bridge, especially whether pricing, timing/hedging, and backlog would drive the improvement. Management said the key Q2 drivers are higher volumes and the net timing/hedging effect; Europe still has some lower-margin backlog from Q4, but the impact should be lower in Q2 and most of the backlog should be worked through then. Questions also focused on Europe’s pricing mechanics, scrap tightness, and Americas volumes; management said scrap availability is not currently an issue, that price increases are reflected in guidance, and that Americas volume growth is constrained by reduced flexibility between Mexico and the U.S. compared with the past.