Europe: Outokumpu’s Q2CY’25 sales slip on lower prices; Q3 outlook weak amid market headwinds

• Stainless steelmaker expects 5-15% drop in deliveries in Q3
• EBITDA falls, but higher deliveries, cost cuts limit decline

Outokumpu, the global leader in sustainable stainless steel in Europe and the second-largest producer in the Americas, reported softer sales in Q2CY’25 as lower realised stainless steel prices offset higher deliveries. Consolidated sales came in at EUR 1,486 million ($1,732 million), down from EUR 1,540 million ($1,795 million) a year earlier and EUR 1,524 million ($1,774 million) in Q1CY’25. Group deliveries rose 3% y-o-y to 483,000 tonnes (t) in the quarter, taking first-half shipments to 953,000 t, with moderate volume gains in both Europe and the Americas.

EBITDA

Reported EBITDA stood at EUR 39 million ($49.5 million), down from EUR 56 million ($65.2 million) in Q2CY’24 and EUR 47 million ($54.7 million) in Q1CY’25. The quarter benefited from higher deliveries, cost savings, and lower raw material costs, particularly in the Americas division, where optimisation and cost-reduction initiatives continued to bear fruit.

Ferro chrome business updates

The ferro chrome business — underpinned by Outokumpu’s position as the EU’s only chrome miner — delivered solid results. Demand for its low-emission ferro chrome remained robust, supported by strong external orders and energy optimisation. With global ferro chrome supply constrained by capacity cuts in southern Africa, prices and demand were resilient. Outokumpu’s ferro chrome has a 67% lower carbon footprint than the global average, giving it an edge as EU climate policies such as CBAM begin to reshape the competitive landscape.

New strategies

Under its newly launched EVOLVE strategy for 2026-30, the company is focusing on two growth pillars:

• Foundational business: Improving cost competitiveness and cash generation in standard stainless steel.
• Transformative business: Expanding in advanced materials and innovative technologies.

Expansion plans

Key steps include an EUR 200 million ($23.3 million) investment in a new annealing and pickling line at Tornio, Finland, alongside the closure of two less competitive lines in Krefeld, Germany. A feasibility study is also underway for high-nickel alloy expansion at Avesta, Sweden.

The group continues to advance proprietary low-CO₂ metal technologies, leveraging its integrated chrome supply.

Outlook

For Q3CY’25, Outokumpu expects stainless steel deliveries to fall 5-15% from Q2 due to seasonal factors and persistent weakness in the European market. Prices in Europe are likely to remain under pressure as Asian imports stay elevated. In the US, while tariffs continue to shield local producers, there are no clear signs of demand recovery. Maintenance outages in Europe are expected to hit adjusted EBITDA by up to EUR 10 million ($11.6 million), and overall profitability is projected to be lower than in Q2.