Salzgitter reduced its steel production by 8% y/y in 2025

According to its 2025 results, the German conglomerate Salzgitter AG reduced its steel production by 8% year-over-year to 5.9 million tons, as stated in the company’s report.

The group’s external sales fell to €9 billion last year from €10 billion in 2024 due to lower average prices for steel products and the deconsolidation of the stainless steel pipe business. EBITDA for the period declined to €376 million from €445 million a year earlier.

According to the company’s report, the Salzgitter Group’s performance in 2025 was driven by persistently weak demand in key customer sectors and high energy prices, exacerbated by intense international competition. Rolled steel prices fell below the level recorded in 2024. Combined with global disruptions in trade flows caused by U.S. trade policy, this scenario put significant pressure on steel producers.

The countertrend stemmed from record results in the technology business segment, as well as another contribution to earnings from investments in Aurubis AG, accompanied by cost-saving effects from the P28 profit improvement program.

As Gunnar Grebler, CEO of Salzgitter AG, noted, given the growing uncertainty, the company is focusing on internal measures, which include aggressive cost-cutting, restructuring, and active steps regarding its asset portfolio. Salzgitter systematically optimizes its portfolio in accordance with the “best owner” principle through sales and acquisitions.

According to him, the company is ready to open up economic prospects for Hüttenwerke Krupp Mannesmann (HKM) under Salzgitter’s sole responsibility.

This year, the group expects new European trade defense instruments and the CBAM to support investment and competitiveness. Salzgitter forecasts sales of €9.5 billion and EBITDA in the range of €500 million to €600 million for 2026.

As a reminder, in 2024, Salzgitter increased steel production by 11.9% compared to 2023 — to nearly 6.4 million tons. The company’s external sales last year fell to €10 billion from €10.8 billion in 2023 due to lower average revenue per ton of steel products and a weak order backlog in the steel processing division.