Outokumpu Oyj (OUTKY) Q1 2025 Earnings Call Highlights: Strong Deliveries and Record Recycled ...

GuruFocus News

Fri, May 9, 2025, 12:09 AM 3 min read

• Adjusted EBITDA: EUR49 cardinal successful Q1 2025.

• Deliveries Increase: 11% connected radical level; 13% successful the Americas; 11% successful Europe.

• Strike Impact: EUR50 cardinal antagonistic interaction connected radical effect owed to a one-week onslaught successful Finland.

• Ferrochrome Performance: Best effect since Q2 2022.

• Recycled Material Content: Increased to an all-time precocious of 97%.

• Cost Savings Target: EUR50 cardinal short-term outgo savings connected way for 2025.

• EBITDA Run Rate Improvement: EUR313 cardinal cumulative improvements, targeting EUR350 cardinal by extremity of 2025.

• Net Debt: Increased to EUR252 cardinal successful Q1 2025.

• Total Liquidity Reserves: Strengthened to EUR1.2 cardinal with a caller EUR200 cardinal word loan.

• Capital Expenditures: Limited to EUR160 cardinal for 2025.

• Dividend: EUR0.26 per stock declared for fiscal twelvemonth 2024, with EUR0.13 per stock paid successful April 2025.

• Ferrochrome Deliveries: Up by 24% 4th connected quarter.

• Leverage Ratio: Limited summation to 1.3.

• Safety Performance: Total recordable incidental frequence complaint of 1.9, supra the people of 1.5.

• Warning! GuruFocus has detected 5 Warning Signs with OUTKY.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Outokumpu Oyj (OUTKY) reported an improved adjusted EBITDA of EUR49 cardinal successful Q1 2025 contempt volatile marketplace conditions.

• Deliveries accrued by 11% astatine the radical level, with important maturation successful the Americas and Europe.

• The concern country Ferrochrome achieved its champion effect since Q2 2022, highlighting beardown operational performance.

• The institution reached a grounds precocious recycled worldly contented of 97%, positively impacting CO2 emissions.

• Outokumpu Oyj (OUTKY) strengthened its liquidity reserves to EUR1.2 cardinal with a caller EUR200 cardinal word loan.

• A one-week onslaught successful Finland negatively impacted the radical effect by EUR50 million, peculiarly affecting the concern country Europe.

• Asian imports proceed to exert unit connected prices successful some Europe and North America, amidst a muted request environment.

• The company's information show did not conscionable its target, with a full recordable incidental frequence complaint of 1.9, supra the people of 1.5.

• The concern country Ferrochrome faces higher costs owed to little fixed outgo absorption and the lack of electrification aid.

• Geopolitical uncertainties and tariffs airs risks to Outokumpu Oyj (OUTKY)'s operating environment, deliveries, and fiscal performance.

Q: Can you supply much details connected the outgo savings achieved successful Q1 and the expectations for the remainder of the year? A: The EUR11 cardinal outgo savings achieved successful Q1 are portion of a full EUR50 cardinal people for 2025. The remaining EUR40 cardinal is expected to beryllium realized arsenic implicit the adjacent quarters. Marc-Simon Schaar, CFO