Outokumpu Reports Higher Q1 Earnings Amid Favorable Market Conditions

Finnish steel manufacturer Outokumpu Oyj reported an increase in its adjusted EBITDA to EUR 65 million for the first quarter of 2026, a significant rise from EUR 10 million in the previous quarter. The improvement was attributed to better profitability in its European operations due to higher delivery volumes and a stronger performance in the Americas business area, supported by increased average stainless steel prices.

The stainless steel market saw improved activity during the period, influenced by seasonal demand and the European Union's Carbon Border Adjustment Mechanism (CBAM). Outokumpu's stainless steel deliveries increased by 27% from the fourth quarter of 2025 to 465 thousand tonnes. The ferrochrome market remained balanced, leading to price increases and benefiting the company's low-emission European products. Ferrochrome deliveries rose 17% to 110 thousand tonnes.

Despite the positive trends, the company's results were still affected by implementation backlogs related to a new supply chain solution. Operating cash flow strengthened to EUR 85 million, with a decrease in net debt to EUR 241 million. The company's restructuring program, targeting annual cost savings of EUR 100 million by the end of 2027, is progressing as planned.

Outokumpu is advancing its EVOLVE growth strategy, including the construction of a pilot plant in the U.S. for low-CO2 ferrochrome and chromium metal production, slated for operation in early 2027. The company is also developing higher-margin specialty ferrochrome products, launching a circular economy initiative at its Kemi mine, and reviewing potential investments in its Tornio plant and Avesta melt shop for expansion into high-nickel alloys.