Salzgitter AG

Sales revenues were EUR 4.6 billion in the first half of 2026, down 1.6% year over year. Operating profit was EUR 59 million, EBT was EUR 258 million, and the all-in result after taxes was EUR 43 million; cost of materials improved by EUR 122 million and Aurubis contributed plus EUR 113 million. Net financial position was broadly stable versus a year ago, with a difference of only EUR 4 million, and cash rose to EUR 1.2 billion. For full-year 2026, management guided sales above EUR 10 billion, EBITDA of EUR 725 million to EUR 825 million, pretax result of EUR 325 million to EUR 425 million, and ROCE marginally above last year. CapEx is expected at EUR 650 million for 2026 including EUR 100 million for HKM, while the first-half investment spend was EUR 88 million; P28 delivered EUR 97 million in 6 months, already 80% of the EUR 122 million full-year target. Management also said the next 3 years would require about EUR 100 million of net additional cash for HKM overall, with around EUR 900 million of transformation investment and EUR 200 million of funding tied to the EAF project, and that 2027 SALCOS spending could be around EUR 0.5 billion after funding.

Gunnar Groebler framed the first half as a positive but still challenging period, with weak underlying demand, geopolitical volatility, and weather-related disruptions. He emphasized that regulatory support is turning more constructive, especially CBAM, the new safeguard measures, and ongoing EU trade-defense actions, which are already lifting prices and reducing imports. Strategically, he highlighted the company’s decarbonization path through SALCOS and HKM, saying the business remains committed to green steel while keeping flexibility on timing for later project phases.

Birgit Potrafki stressed that earnings improved significantly despite the lack of economic tailwinds, with gains across all segments and a stronger contribution from restructuring and margin improvement. She highlighted the EUR 122 million improvement in cost of materials, the EUR 113 million boost from Aurubis, the EUR 59 million operating profit, and a stable net financial position year over year. On capital allocation, she pointed to EUR 88 million of H1 investment, EUR 650 million expected for 2026 including HKM, a 42% equity ratio, EUR 1.2 billion of cash, and reiterated that HKM should require only about EUR 100 million of net additional cash over three years overall.

Analysts pressed on whether recent HRC price increases were being helped by low water levels and whether Q3 would benefit from the new trade restrictions; management said it was too early to attribute price moves to water levels, but did expect some TRQ and safeguard effects to show up in Q3. HKM dominated the Q&A: management said the EUR 900 million transformation budget includes contingencies, the restructuring timing is front- and back-loaded around the furnace shutdowns, and the EUR 100 million net HKM cash figure already includes restructuring, investment, and operating cash effects. They also said the Q3 steel spread should be broadly stable with a slight chance of contraction, and that the blast furnace restart is planned for Q4 while the second furnace is expected to be taken out soon after the relined unit is stable.