Outokumpu posts adjusted earnings of €101 million as deliveries set to decline
Key Facts
Outokumpu reported adjusted earnings before interest, taxes, depreciation and amortization of €101 million in the third quarter of 2026, unchanged from the previous quarter, according to its results statement for the first nine months. The figure was above the €34 million recorded in the third quarter of 2025, reflecting an annual improvement in adjusted profitability. Sales were €1.555 billion, compared with €1.298 billion in the same period a year earlier. The company also posted operating profit of €43 million, after an operating loss of €24 million a year earlier. Net income for the period rose to €22 million from a loss of €35 million in the third quarter of 2025.
Performance varied across regions and businesses, with the company's deliveries in the Americas rising 7% from the previous quarter. Outokumpu said higher deliveries and prices supported the segment's profitability, which recorded its strongest quarterly adjusted earnings in three years. In Europe, demand remained weak, the company's chief executive said. She added that demand was stronger in selected industrial sectors, such as data centers and energy, while it remained weak in household appliances and automotive. Policy mechanisms helped reduce stainless steel imports, but the company said this was not enough to offset broader market weakness.
In the ferrochrome business, deliveries fell 4% from the previous quarter, although demand for low-emission ferrochrome remained good. The company attributed the decline mainly to seasonality, while performance in the Americas supported overall results. Profitability, however, did not translate into operating cash flow, which was negative €83 million in the third quarter. The company said an increase in working capital affected cash flow during the period. Net debt rose to €348 million at the end of the third quarter.
The company expects adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter to be affected by lower deliveries across the businesses and higher costs. It said the biggest impact is likely in the Europe segment, where demand is expected to remain weak and customer inventories to stay high. For stainless steel, Outokumpu expects deliveries to fall by 5–15% compared with the third quarter of 2026. It also expects adjusted earnings in the fourth quarter to be at a similar level to the €10 million recorded in the fourth quarter of 2025. This outlook places the coming period's performance in the context of weak European demand and expected lower deliveries.
Alongside market pressures, Outokumpu said its €100 million restructuring program is progressing ahead of schedule. The company expects to achieve savings of about €60 million during 2026. In its investment program, the pilot plant for EvoMaterials technology is targeted to start operating in the first half of 2027. The company also plans to install an electric slag remelting unit at its Avesta plant, with commissioning scheduled for the first quarter of 2028. A detailed engineering study is also underway for the second phase of a new investment in melting and casting capacity, with start-up planned by the end of 2029.
In trading on November 6, 2026, Outokumpu shares fell 12.63%, according to Investing.com historical data. The decline came in a session that saw the release of the company's third-quarter results and outlook for the next period. Company data showed an improvement in adjusted earnings and operating profit compared with the third quarter of 2025. At the same time, the results highlighted negative operating cash flow and higher net debt during the quarter. The outlook included lower stainless steel deliveries, with demand remaining weak and customer inventories high in Europe.