Q1 2026 Salzgitter AG Earnings Call Transcript
Key Points
- Salzgitter AG (SZGPF) reported a promising start to 2026 with an adjusted EBITDA of EUR280 million, marking a significant improvement after two challenging years.
- The company's P28 performance program contributed an additional EUR43 million in efficiency gains in the first quarter.
- Salzgitter AG's net financial position improved significantly from minus EUR954 million to minus EUR679 million, aided by public funding.
- The EU's new trade defense instrument and the Carbon Border Adjustment Mechanism are expected to positively impact the company's operations and pricing.
- The Technology business unit had a strong first quarter, with expectations for another record year in sales and profit.
- Despite the strong first quarter, Salzgitter AG remains cautious due to ongoing geopolitical and macroeconomic uncertainties, including hostilities in the Gulf region.
- High levels of economic uncertainty continue to depress the European steel market, affecting growth projections.
- Surging energy prices and freight rates are exerting pressure on the company's cost structure.
- The company has not significantly revised its revenue guidance upwards despite the strong first quarter, indicating cautious optimism.
- The Steel Processing division faces challenges with underutilization in certain areas, impacting its ability to turn EBITDA positive in the near term.
(audio in progress) Good morning, ladies and gentlemen, , and a warm welcome from me here in Salzgitter. I'm happy to announce that with EUR280 million adjusted EBITDA, we have made a promising start to 2026. And I can tell you that after two challenging years, that feels really good.
As announced on April 21, our first quarter performance was boosted by an exceptionally strong contribution from our stake in Aurubis. This was driven by the high prices commanded for precious metals. It's important to stress though that all our core business units also contributed to the earnings improvement versus a year earlier. This is obviously very pleasing.
Our P28 performance program has been a key contributor to this business-wide turnaround. An additional EUR43 million in efficiency gains were realized already in the first quarter. Our net financial position has also improved considerably since the beginning of the year from minus EUR954 million to minus EUR679 million, mainly on the back of
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