Salzgitter AG

In the first half of 2026, Salzgitter reported sales revenues of EUR 4.6 billion, down 1.6% year over year. EBITDA and EBT were significantly above the prior year, with EBT at EUR 258 million; operating profit was EUR 59 million and after-tax result was EUR 43 million. Management also highlighted EUR 122 million of improvement in cost of materials versus last year, and a EUR 113 million contribution from Aurubis participation. The company reiterated full-year 2026 guidance for 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 the previous year. For capital spending, Salzgitter expects EUR 650 million of investments for the full year including EUR 100 million for HKM, and said HKM will contribute positively in the second half of 2026 by a mid-sized double-digit million amount before purchase price allocation effects.

Gunnar Groebler framed the first half as bottom-line positive despite weak European steel demand, volatile geopolitics, and challenging operating conditions. He emphasized that results improved in every segment because of both better spreads and internal restructuring, and he pointed to a more supportive policy backdrop from CBAM, the new safeguard measures, and further EU trade defenses. Strategically, he stressed progress on SALCOS, the 100% acquisition of HKM, and the need for competitive energy prices and stronger end-demand, while saying the company remains on track to stay in the black in 2026.

Birgit Potrafki said the business is benefiting from EU trade-defense measures even without macro support, and she described earnings improvement as broad-based and better than expected. She cited EUR 4.6 billion of revenue, EUR 59 million of operating profit, EUR 258 million of EBT, a 42% equity ratio, and a stable net financial position versus last year with only a EUR 4 million difference. She also highlighted EUR 97 million of P28 savings after six months against a EUR 122 million target, EUR 88 million of first-half capex, a full-year investment plan of EUR 650 million including EUR 100 million for HKM, and said the net additional cash need for HKM over three years is EUR 100 million including restructuring, investment, and funding inflows.

Analysts focused heavily on HKM: the size and timing of the EUR 900 million EAF/transformation capex, restructuring costs, maintenance capex, and the recurring profit contribution. Management said the EUR 900 million budget has contingencies, restructuring is mostly tied to personnel reductions and the second blast furnace shutdown in 2029, and the EUR 100 million net cash need over three years is the total holistic amount after operating cash, shareholder contributions, and public funding. Questions also covered whether Q3 volumes and HRC prices could be helped by tariffs/low water levels; management said it is too early to attribute price moves to water levels, but TRQ/safeguard effects should start showing in Q3 and the market remains uncertain. On trading, management said Q2 was helped by a favorable material-cost/price combination and stock buildup, but second-half trading is expected to be more cautious.