Salzgitter AG Reports Quarterly Loss Amid Market Challenges

Salzgitter AG (SZGPF.PK) reported a disappointing quarterly loss with a decline in sales and prices. Analysts view the reaffirmed outlook for fiscal 2025 as cautious. Investors should keep an eye on potential recovery indicators and market conditions.

Date: 12-05-2025

AI Rating: 4

Earnings Per Share (EPS): Salzgitter reported a consolidated loss of 0.66 euro per basic share, drastically down from a profit of 0.24 euro in the previous year. This significant drop indicates major challenges and could lead to negative sentiment among investors.

Revenue Growth: External sales have declined by 13%, from 2.68 billion euros to 2.33 billion euros, showcasing a shrinking market presence which will concern investors regarding future revenue growth.

Net Income: The company reported a pre-tax loss of 27.3 million euros as opposed to a profit of 17.2 million euros a year ago, marking a stark turnaround that reflects poor operational performance.

Profit Margins: EBIT was negative at -0.5 million euros, a significant drop from the prior profit of 45.2 million euros. Similarly, EBITDA fell substantially from 126.4 million euros to 78.6 million euros, indicating tightening margins in a competitive and declining market.

Future Outlook: Salzgitter continues to expect a range for fiscal 2025 earnings before tax of negative 100 million euros to positive 100 million euros, with EBITDA projected between 350 million euros and 550 million euros. It is crucial for investors to monitor these targets closely to assess the company’s potential recovery. The anticipated sales of 9.5 billion euros to 10.0 billion euros in sales reflects caution amid broad market challenges, including lower selling prices and trading volumes. This reaffirmation of guidance could be perceived positively, however, without significant recovery, it may lead analysts to adjust future earnings expectations.

Stocks: SZGPF