Salzgitter reduced steel production by 7.5% q/q in Q1

German steelmaker Salzgitter AG cut steel production by 7.5% to 1.55 million tons in January-March 2025 compared to the previous quarter. This was due to a drop in demand for flat products and planned repairs to blast furnace equipment, the company said in its quarterly report.

The group’s revenue for the first quarter decreased by 13% yoy to €2.33 billion. The company recorded an operating loss (EBIT) of €0.5 million and a net loss of €34.6 million. Compared to a profit of €15 million in January-March 2024, the financial results have deteriorated significantly.

The steelmaking segment was particularly weak, with EBITDA falling to €38.7 million and pre-tax losses reaching €22.9 million. The steel processing sector showed similar dynamics, with a loss of more than €25 million.

Amid weak demand and pricing pressure, Salzgitter is stepping up its cost-cutting and efficiency program. The P28 program, which replaced the Performance 2026 initiative, is expected to generate around €500 million in savings by 2028. In the first quarter, the company already achieved an economic effect of €14.3 million.

Despite the challenging macroeconomic environment and global risks, the company expects the situation to stabilize in the second half of the year. In 2025, Salzgitter expects revenues of €9.5-10 billion, EBITDA in the range of €350-550 million and a possible pre-tax surplus.

As a reminder, in 2024, Salzgitter AG exceeded market expectations in terms of EBITDA in 2024, reaching €445 million. Despite a decline in total turnover to €10.0 billion (versus €10.8 billion in 2023) and a significant pre-tax loss of €296 million, the company’s profitability by this key indicator was higher than forecast.