In This Article:
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Operating Result: SEK1.3 billion for Q1 2025.
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Special Steels Sales: Increased to 336,000 tonnes in Q1.
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SSAB Europe Operating Result: SEK33 million, impacted by a SEK120 million strike cost.
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Tibnor Operating Result: SEK35 million.
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Q1 Revenue: SEK25.5 billion, an 8% increase from the previous quarter.
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EBITDA: SEK2.4 billion, up from SEK1.6 billion in Q4 2024.
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Net Cash Position: SEK14.4 billion at the end of Q1 2025.
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Q1 Shipments: Increased by 16% from the previous quarter.
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CapEx Outlook: SEK10 billion planned for 2025, with SEK3 billion for maintenance and SEK7 billion for strategic investments.
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Financing Package: EUR2.3 billion secured for the Lule mini-mill project.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SSAB AB (SSAAF) reported a strong safety performance, maintaining a high focus on safety across all operations.
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Special Steels division showed a significant recovery in volumes and maintained pricing, contributing to a financial performance of SEK1.4 billion.
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The company approved an investment in a tempering furnace at the Mobile production facility, enhancing its capability to produce advanced grades like Hardox 500 Tuf.
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SSAB AB (SSAAF) secured a EUR2.3 billion financing package for the Lule mini-mill project, providing flexibility and supporting project implementation.
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The company experienced a strong order intake in the Americas, with expectations of significantly higher prices in upcoming quarters.
Negative Points
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The strike in Finland resulted in a cost of roughly SEK120 million, negatively impacting financial performance.
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Revenue for Q1 was down 6% compared to the previous year, indicating lower prices despite increased shipments.
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EBITDA dropped compared to the previous year, with a significant impact from lower prices, particularly in the Americas division.
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The company faces uncertainty due to tariffs, which could impact long-term export and trade dynamics.
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SSAB Europe reported low profitability levels, indicating a need for improvement despite some positive volume performance.
Q & A Highlights
Q: Special Steels shipments were up almost 30% sequentially. Is this driven more by shipments to the US than Europe, and is there any inventory buildup related to tariffs? A: The Q1 shipments were in line with last year and expectations. There was some increase due to tariffs, but no significant inventory buildup. The demand is strong, especially in the mining segment.