Salzgitter’s EBITDA for FY2024 exceeds expectations

German steel company 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 expected.

An important role in the results was played by the contribution of Aurubis AG, which amounted to €184 million, as well as significant one-off expenses: €278 million for asset impairment and €128 million for restructuring.

Salzgitter AG’s management presented its forecast for 2025. The company expects turnover in the range of €9.5-10 billion, EBITDA from €350 to €550 million, and loss/income before tax in the range of -€100 million to +€100 million. At the same time, the company expects to increase its return on equity in 2025.

Salzgitter AG notes that the economic situation in Germany remains unstable, and while possible opportunistic measures by the new government may have a positive impact on the second half of the year, global trade risks, particularly from the United States, add to the uncertainty.

As GMK Center reported earlier, Salzgitter increased steel production by 6.2% year-on-year – to 3.33 million tons in 1H2024. Steel sales in January-June decreased by 10.2% y/y – to €5.24 billion. EBITDA fell by 45.6% y/y – to €233.6 million, while pre-tax profit fell by 94.6% y/y – to €11.5 million.