In This Article:
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Revenue: EUR 10 billion, a decrease from the previous year.
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EBITDA: EUR 445 million, stronger than previously announced.
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Earnings Before Taxes (EBT): Minus EUR 296 million, impacted by onetime effects totaling EUR 400 million.
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Operational Result: EUR 109 million, excluding onetime effects.
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Cash Flow from Operating Activities: EUR 408 million, improved by EUR 550 million in Q4 2024.
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Net Financial Position: Slightly below minus EUR 600 million, planned due to transformation investments.
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Dividend Proposal: EUR 0.20 per share.
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Crude Steel Production: Increased due to relining of blast furnace A in 2023.
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External Sales: Decreased by EUR 880 million, attributed to price developments.
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Depreciation: Significant write-downs on MPT Group and HKM participation.
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Investments: EUR 899 million in 2024, with significant spending on SALCOS.
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Management Guidance for 2025: Sales between EUR 9.5 billion and EUR 10 billion; EBITDA EUR 350 million to EUR 550 million; EBT between minus EUR 100 million and plus EUR 100 million.
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Salzgitter AG (SZGPY) has improved its occupational safety metrics, continuing a positive trend since 2018.
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The company is well-positioned to benefit from EU's strategic focus on the steel industry, particularly through the European Green Deal and Clean Industrial Deal.
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Salzgitter AG (SZGPY) has secured funding for SALCOS Stage 1, ensuring the production of 2 million tons of green steel.
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The company has a strong order backlog for 2025, particularly in its technology sector, with KHS achieving record results.
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Salzgitter AG (SZGPY) has implemented a comprehensive performance program, P28, aiming to achieve EUR 500 million in cost savings by 2028.
Negative Points
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Salzgitter AG (SZGPY) reported a significant pre-tax loss of EUR 296 million for 2024, primarily due to one-time write-offs and restructuring costs.
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The company faces challenges from fluctuating raw material and energy prices, impacting its cost structure.
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There is uncertainty in the international trading environment due to ongoing trade barriers and discussions.
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The steel processing segment experienced declines in demand and prices, particularly affecting heavy plate and precision tubes.
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Salzgitter AG (SZGPY) has not yet received a firm takeover offer from the consortium interested in acquiring a majority share, creating uncertainty about future ownership.
Q & A Highlights
Q: Can you specify the CapEx expectation for 2025 and the associated subsidy cash flow for the SALCOS program? A: The total government support for SALCOS is EUR1 billion, which is invoiced quarterly. For 2025, we expect a subsidy amount of more than EUR300 million, including a spillover effect from last year.