Acerinox posts €199 million in third-quarter operating profit, beating expectations
Key Facts
Acerinox said on October 30 that adjusted operating profit reached €199 million in the third quarter of 2026, beating analysts’ estimate of €184 million by 8%, according to Investing.com coverage. The figure rose from €176 million in the second quarter, a sequential improvement despite falling demand in Europe. In the first nine months, group revenue increased 2% year over year to €4,556 million, from €4,473 million in the same period of 2025. The earnings before interest, taxes, depreciation and amortization margin was 10%, compared with 7% a year earlier. The company said the results “confirm Acerinox’s resilient performance in an extremely complex and challenging market environment,” while the comparison with forecasts showed third-quarter performance exceeded analysts’ expectations.
The group’s improved performance was driven by its stainless steel division, which reported earnings before interest, taxes, depreciation and amortization of €411 million in the first nine months, compared with €218 million a year earlier. By contrast, earnings in the high-performance alloys division fell to €59 million from €103 million in the year-earlier period. The alloys division recorded €24 million in the third quarter, up 9% from the previous quarter. But the division’s revenue was €1,096 million in the first nine months, compared with €1,322 million a year earlier. The figures reflect a divergence between the division’s improved quarterly profitability and its lower year-over-year revenue.
The United States continued to outperform Europe, with apparent stainless steel demand rising 6% quarter over quarter in the third quarter, despite falling 2% over the nine months year over year. U.S. imports of flat products fell 18% year over year in the third quarter, accounting for 21% of the market. U.S. inventories were also 9% below their historical average. In Europe, steel demand fell 22% quarter over quarter in the third quarter, amid seasonal factors and restocking in late in the second quarter, according to Investing.com. Lower imports of flat products did not provide enough of a boost to domestic producers: imports into Europe fell 42% year over year in the first nine months but still accounted for 16% of the market, while inventories remained 1.4% above their historical average.
The company said weak economic conditions and high inventories prevented domestic producers from fully benefiting from the decline in European imports. The market pressure coincided with a financial impact from the conflict in the Middle East, as higher energy and transport costs weighed on results. Acerinox estimated the impact at €16 million in the third quarter and €24 million since the start of the year. It said the impact of the Carbon Border Adjustment Mechanism and new European trade measures could become tangible in early 2027. The company linked this to inventories returning to normal levels, while the new trade measures took effect on July 1.
The group’s cash-generation capacity weakened over the first nine months, with operating cash flow at €27 million, compared with €299 million a year earlier. The company recorded negative free cash flow of €96 million in the third quarter, with working capital outflows of €152 million and capital expenditure of €80 million. Net financial debt rose to €1,535 million at the end of the period. The company attributed the quarterly increase in debt to a €152 million rise in working capital and payment of €77 million in dividends. It said it expects working capital and net debt to decline by year-end as working capital is released.
Acerinox expects fourth-quarter earnings before interest, taxes, depreciation and amortization to fall from the third quarter, with volumes declining because of the usual seasonal slowdown in the United States. It also expects stable performance in the aerospace division and sees limited positive signs in Europe’s oil, gas and chemicals industries. The company’s schedule includes an investor roadshow in Madrid on November 3, followed by a London roadshow on November 4. The U.S. and Canada roadshow is scheduled for November 17 to 19. The company set its Madrid Investor Day for January 13, 2027, while the timing of the impact of European measures remains linked to inventory normalization early that year.