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Outokumpo Oy (OUTKY) is a global leader in sustainable stainless steel production, recognized for its integrated manufacturing processes and industry-leading decarbonization efforts. This page serves as a comprehensive resource for investors and stakeholders seeking official updates on the company's financial performance, environmental initiatives, and market developments.
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Outokumpu (OUTKY) has announced its decision not to proceed with cold rolling capacity expansion in the U.S., following an extensive feasibility study. The company remains focused on its target to increase cold rolling capacity in business area Americas by 80 kilotons through de-bottlenecking investments and productivity improvements by the end of 2025, having already achieved a 65 kiloton increase by end of 2024.
The decision comes amid unpredictable market conditions and significantly increased imports. The company will assess the impact of newly introduced 25% import tariffs on steel and derivatives in the U.S. Outokumpu maintains approximately 900 kilotons of melting and hot rolling capacity and 600 kilotons of cold rolling capacity in the Americas, split between U.S. (350 kilotons) and Mexico (250 kilotons).
Outokumpu reported challenging results for 2024, with adjusted EBITDA falling to EUR 177 million from EUR 517 million in 2023. The company faced historically low stainless steel demand in Europe, with deliveries decreasing to 1,793,000 tonnes from 1,906,000 tonnes.
Key financial metrics showed deterioration: sales decreased to EUR 5,942 million from EUR 6,961 million, free cash flow turned negative at EUR -71 million compared to EUR 290 million in 2023, and earnings per share was EUR -0.09. The company's performance was notably impacted by a political strike in Finland, causing approximately EUR -60 million in losses.
Despite challenges, the Board proposed a dividend of EUR 0.26 per share for 2024. The company completed its share buyback program in February 2024, repurchasing 8,357,545 shares. For Q1 2025, Outokumpu expects stainless steel deliveries to increase by 10-20% compared to Q4, though price pressures are expected to continue.
Outokumpu reported Q3 2024 results with adjusted EBITDA of EUR 86 million, up from EUR 51 million in Q3 2023. Stainless steel deliveries reached 459,000 tonnes, slightly higher than last year's 449,000 tonnes. The company's sales decreased to EUR 1,518 million, with earnings per share of EUR 0.05.
Business area Europe showed improved performance with EUR 59 million adjusted EBITDA, while Americas' adjusted EBITDA declined to EUR 5 million. Ferrochrome maintained solid performance with EUR 29 million adjusted EBITDA. The company expects Q4 2024 stainless steel deliveries to decrease by 0-10% compared to Q3, with adjusted EBITDA forecasted lower than Q3.
Outokumpu, a global leader in sustainable stainless steel, has been recognized for the second time as a Climate Leader in Europe by the Financial Times. This acknowledgment highlights Outokumpu's significant reduction in Scope 1 and 2 greenhouse gas emissions intensity by 27% from 2016 to 2023. The company achieved this through increased use of recycled materials, low-emission electricity, and operational changes. Additionally, Outokumpu has made investments in biocoke production and explored carbon capture technology. By 2030, the company aims to cut emissions intensity by 42% from the 2016 baseline. Outokumpu's commitment to sustainability has also led to its inclusion in the Climate Leadership Coalition and its ranking among the top 50 companies globally by Corporate Knight's Clean200 list.
Outokumpu reported a robust Q3 2022, with sales reaching EUR 2,339 million, a significant increase from EUR 1,845 million in Q3 2021. Adjusted EBITDA rose to EUR 304 million from EUR 288 million. A notable highlight was the reduction of net debt to an all-time low of EUR 90 million. The company launched a share buyback program for a maximum of 20 million shares. However, stainless steel deliveries fell by 12% in a challenging market environment, impacted by high imports and rising costs in energy and raw materials.
Outokumpu's Board of Directors has approved a share buyback program worth up to EUR 100 million, aiming to repurchase 20 million shares, about 4.4% of its total shares. The program will start on November 7, 2022, and conclude by March 24, 2023. This initiative seeks to manage the dilutive effects of existing convertible bonds and may involve holding shares as treasury or cancelling them. The buyback will use unrestricted equity and is conducted under safe harbor regulations on Nasdaq Helsinki.
Outokumpu has announced a significant increase in its energy efficiency improvement target, aiming for an 8% enhancement across the group by the end of 2024, compared to January–September 2022 levels. This initiative is a response to the European energy crisis and involves an additional EUR 20 million in capital expenditure for 2023 and 2024, while maintaining a EUR 200 million annual capex. The company also targets a 42% reduction in CO2 emissions by 2030 from a 2016 baseline. These measures are expected to save approximately 600,000 MWh, equivalent to the annual electricity use of 15,000 households.
