Salzgitter Posts Pre-Tax Profit of €353 Million and Raises Annual Outlook
Key Facts
Salzgitter AG said preliminary results for the first nine months of 2026 showed adjusted pre-tax profit of €353 million, compared with a loss of €72.7 million in the same period of 2025. Adjusted earnings before interest, taxes, depreciation and amortization were €659 million, versus €224 million a year earlier. External sales also rose to €7.3 billion from €6.9 billion. The company said the steel production and trading divisions performed better than its latest expectations, and both adjusted earnings measures exceeded financial-market expectations for the third quarter. The figures put the return to profitability at the forefront of the period’s results, with full details of the preliminary data due in November.
The company attributed part of the improvement to its stake in Aurubis, which contributed €252 million in the first nine months, up from €83.5 million in the same period last year. Salzgitter said Aurubis’s contribution in the third quarter was "very satisfactory." Alongside this effect, the company said the steel production and trading divisions performed better than its latest expectations. This explanation distinguishes the investment contribution from Aurubis from the improvement recorded by the operating divisions. The company’s announcement did not mention an increase in free cash flow, contrary to the initial version of the report.
The company raised its annual outlook in July, keeping its expected sales for 2026 at around €10 billion, after forecasting around €9.5 billion in April. In the same update, it raised its range for adjusted earnings before interest, taxes, depreciation and amortization to €725–825 million from €625–725 million. It also raised its adjusted pre-tax profit range to €325–425 million, compared with a previous range of €200–300 million. Those forecasts had themselves been raised in April from ranges of €500–600 million and €75–175 million, respectively. The sequence of updates shows the company improving its estimates in stages during the year, while its sales forecast remained at the level announced in July.
Salzgitter included an expected effect from the full consolidation of HKM in its 2026 guidance, saying it could add a low double-digit million-euro amount to both adjusted earnings measures. It expected the consolidation to increase external sales by a low three-digit million-euro amount. The company said these assumptions were already included in its annual guidance, making HKM’s effect part of current estimates rather than a separate addition. This comes amid plans for a full takeover of the venture, covered previously. Part of the stated outlook is therefore linked to the consolidation and its accounting effect on the group’s results and sales.
The company cautioned that the valuation of the convertible bond it issued in October 2025 could cause non-operating earnings volatility, which may at times be significant. It said it excludes the effect of this valuation from adjusted earnings before interest, taxes, depreciation and amortization, adjusted pre-tax profit and return on capital employed. It also said multiple geopolitical uncertainties limit the reliability of forecasts for the final quarter and cloud the outlook for economic developments and the valuation of listed assets. The warning sets limits on how to read the annual estimates for the remaining months of the year, despite strong preliminary performance. Salzgitter is due to publish full details of its nine-month figures on 12 November 2026.
The results come amid a slight improvement in Germany’s ifo business climate index, which rose to 90.2 points in October from 89.9 in September. The ifo Institute said companies’ assessment of their current situation edged down despite the increase in the overall index. German unemployment data and the preliminary October consumer price index were scheduled for release on 30 October 2026. These economic indicators provide context for the environment in which the company operates, but do not change the nature of Salzgitter’s results as preliminary figures for the nine months ended. The next step for investors is to review the detailed disclosure the company scheduled for 12 November.