Acerinox Posts €199 Million in Operating Profit, Beating Estimates Despite Share Slide
Key Facts
Acerinox generated EBITDA of €199 million in the third quarter of 2026, up 84% year on year and above the average analyst estimate of €187 million, according to Reuters via MarketScreener. The figure rose 13% from the second quarter, while EBITDA reached €470 million in the first nine months, up 46% from the same period a year earlier. The company posted net profit of €162 million between January and September, compared with €7 million in the same period of 2025. But its shares fell 5.7% on October 30 at 12:30 GMT, as investors focused on a weaker fourth-quarter earnings outlook. Operating results therefore exceeded expectations, while the market’s concerns centered on the trajectory of earnings, cash flow and debt.
Chief Executive Bernardo Velázquez said the results "show the strength of our strategy despite continued weak demand." The company said its quarterly improvement was led by its position in the U.S. market, while the recovery in domestic consumption in Europe remained slower than expected. Europe’s imports fell 42% in the first nine months, helped by the Carbon Border Adjustment Mechanism and new trade measures, according to Acerinox. But the decline in imports did not translate into a faster recovery in domestic demand, leaving a mixed picture across markets. The company said the environment remained complex and challenging, with demand still weak.
Acerinox’s net financial debt rose to €1.5 billion at the end of the third quarter, up €174 million from the previous quarter. The company attributed the increase mainly to a €152 million rise in operating working capital and dividend payments of €77 million during the quarter. In the first nine months of the year, the company distributed €155 million to shareholders. These figures put rising debt and working capital at the center of investors’ assessment of operationally strong quarterly results. Management’s forecast of lower EBITDA in the fourth quarter also kept the focus on the company’s ability to manage liquidity and debt at year-end.
Performance varied across the high-performance alloys business: Acerinox saw positive momentum in aerospace and industrial gas turbines for power generation, against weak demand in oil and gas and chemical processing. For its stainless steel unit, the company expects activity to decline in the fourth quarter because of the usual year-end seasonality in the United States. It said its priorities include financial discipline, working-capital improvement and operating efficiency. This means stronger performance in some markets and businesses did not offset weak demand in others. The company expects lower working capital to help reduce net financial debt by year-end.
In the display sector, AUO posted consolidated revenue of NT$66.88 billion in the third quarter, down 5.7% from the previous quarter and 4.3% year on year. Its operating loss was NT$2.37 billion, net loss attributable to the company’s owners was NT$2.50 billion, and basic loss per share was NT$0.33. The company thus swung to a loss from the previous quarter, rather than reporting a deeper existing loss. AUO said lower revenue reduced gross profit quarter on quarter and turned operating performance into a loss. Its gross margin was 10.1%, while its operating margin was negative 3.5% and EBITDA margin was about 7.4%.
AUO attributed weaker revenue to uneven performance across its businesses: revenue in the display business fell 11% quarter on quarter as demand for consumer electronics products remained weak. By contrast, mobility solutions revenue was broadly stable from the previous quarter, while vertical solutions revenue rose 1%. The company said the increase in vertical solutions was supported by higher display shipments to the retail, healthcare, industrial and commercial application sectors. For the nine months ended September 30, sales were NT$206.798 billion, and the company recorded a net loss of NT$2.295 billion, compared with net income of NT$3.961 billion in the corresponding period of 2025. The results point to greater pressure in the display business, against relative stability in mobility and vertical solutions.
AUO shares listed on the Taiwan Stock Exchange closed at NT$30.65 on October 30, down 9.99% on the day, according to MarketScreener data. The available data do not directly attribute the decline to the earnings announcement. For the fourth quarter, the company said seasonal inventory stocking had largely ended and customers had become more cautious in their purchasing. It expected demand for vertical solutions to remain relatively stable, while continuing to monitor market conditions. It also said its mobility solutions businesses continued to secure new projects and receive customer demand.