Outokumpu Oyj

Outokumpu reported Q1 adjusted EBITDA of EUR 65 million, up from a very low Q4 base. Operating cash flow improved to EUR 85 million, free cash flow was positive at EUR 34 million, net debt was EUR 241 million, leverage was 1.3x, and total liquidity reserves were EUR 1.2 billion. Management said Q1 deliveries were 27% higher at group level, with Europe deliveries up 46% quarter-on-quarter and ferrochrome deliveries up 17% versus Q4. For Q2 2026, the company guided for adjusted EBITDA to be higher than Q1, with stainless steel delivery volumes forecast to rise 0% to 10% from Q1 and with raw material-related inventory and metal derivative gains expected to be realized in Q2. 2026 CapEx guidance remains unchanged at EUR 200 million, about half of which relates to maintenance investments.

Kati ter Horst emphasized that the quarter reflected clearly more favorable market dynamics, with stronger stainless steel market activity, a balanced ferrochrome market, and benefits from CBAM in Europe. She highlighted that the EVOLVE growth strategy is progressing, including the U.S. pilot plant for proprietary technology, which is on time and on budget, and the expansion of ferrochrome into higher-margin products and new customer segments. Her tone was constructive but measured: she noted that end-demand is still largely unchanged and that geopolitical uncertainty, especially in the Middle East, remains a risk.

Marc-Simon Schaar said stronger profitability and continued capital discipline improved the financial position, with operating cash flow at EUR 85 million and free cash flow at EUR 34 million. He pointed to lower net debt of EUR 241 million, leverage of 1.3x, and liquidity reserves of EUR 1.2 billion, while keeping 2026 CapEx guidance unchanged at EUR 200 million. On margins, he said Q1 profitability improved mainly from higher deliveries in Europe and improved pricing in the Americas, while ferrochrome earnings were hurt by the end of electrification aid and higher Finnish mining tax.

Analysts pressed on what drives the Q2 EBITDA guide, especially price versus volume. Management said it does not guide on prices directly, but Q2 should benefit from higher volumes and from net timing and hedging effects, while higher scrap, electricity, freight, and other inflationary costs offset some of the pricing upside. Questions also focused on Europe’s lower-margin backlog and CBAM/safeguards; management said the backlog drag should be smaller in Q2 than Q1 and that most of the Q1-to-Q2 EBITDA improvement is expected to come from Europe. On Americas, management said Q1 included the full effect of earlier price increases, while Mexico is only showing early signs of recovery and U.S.-to-Mexico capacity flexibility is more limited than before. On capital projects, Kati said the Tornio annealing and pickling line and the Avesta high-nickel alloys investment are still under review.