Q1 2026 Outokumpu Oyj Earnings Call Transcript
Key Points
- Outokumpu Oyj (OUTFF) reported an increase in adjusted EBITDA to EUR 65 million, driven by higher deliveries and improved market dynamics.
- The company is progressing with its EUR 100 million restructuring program, expecting significant savings to be realized in 2026.
- Outokumpu Oyj's EVOLVE growth strategy is on track, with a pilot plant in the USA being constructed on time and within budget.
- The company has been recognized for its sustainability leadership, maintaining a high recycled material content of over 95%.
- Outokumpu Oyj's financial position remains strong, with a positive free cash flow of EUR 34 million and a reduction in net debt to EUR 241 million.
- The ferrochrome business faced challenges due to the discontinuation of electrification aid and an increase in Finnish mining tax.
- Geopolitical uncertainties, particularly in the Middle East, have increased market risks and could impact transportation and energy costs.
- Despite improved market sentiment, underlying end-user demand remains largely unchanged.
- The company faced challenges with a backlog of low-margin orders from Q4, impacting Q1 results and expected to continue into Q2.
- Higher raw material costs, particularly scrap prices, have offset some of the positive effects of improved sales pricing.
Welcome to Outokumpu's results webcast. I'm Johan, responsible for Investor Relations. We will start with the presentation by our CEO, Kati ter Horst; and our CFO, Marc-Simon Schaar. After the presentation, you have the opportunity to ask questions over the lines.
And with that, Kati, I hand over to you.
Thank you, Johan. So let's start then, and also from my side, very, very welcome to our result call today. So if I would -- couple of words just kind of say, how do we look at the Q1, I would start by saying that we clearly saw more favorable market dynamics and that also underpinned the higher adjusted EBITDA that you saw in our results. So our adjusted EBITDA increased to EUR65 million, of course, from a very low level than in Q4 last year.
So we've seen that the stainless steel activity has improved, and it has been driven by seasonal factors, but also CBAM-related factors in Europe. And ferrochrome market
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