Klöckner & Co continues solid business performance in second quarter of 2025 despite volatile market environment

• Net income of €2 million in the second quarter of 2025 after net loss in the prior-year quarter (Q2 2024: net loss of €23 million)

• Shipments of 1.2 million tons in the second quarter of 2025, on par with the prior-year quarter

• Sales of €1.6 billion in the second quarter of 2025 considerably below the prior-year period due to price factors

• Operating income (EBITDA) before material special effects of €65 million in the second quarter of 2025 considerably higher than prior-year level (Q2 2024: €42 million)

• Positive cash flow from operating activities of €75 million in the second quarter
  (Q2 2024: €61 million)

• Expanded capacity for electrical steel to meet steeply rising North American demand

• Successful integration of Ambo Stahl and acquisition of Simfloc open up new growth potential in Europe

• EBITDA before material special effects expected to be €40 million to €80 million in the third quarter and €170 million to €240 million in full year 2025

Düsseldorf, Germany, August 6, 2025 – Klöckner & Co continued its solid business performance in the second quarter of 2025 despite a persistently challenging macroeconomic environment. Net income increased considerably compared to the prior-year quarter and came to €2 million in the second quarter of 2025 (Q2 2024: net loss of €23 million). Earnings per share amounted to €0.02 (Q2 2024: loss per share of €0.23).

Shipments, at 1.2 million tons, were on par with the prior-year quarter (Q2 2024: 1.2 million tons). In North America, the company was able to increase its shipments to a record level in contrast to the overall market development, while weak demand in Europe led to falling shipments in this region. Sales fell considerably to €1.6 billion in the second quarter of 2025 due to price factors (Q2 2024: €1.8 billion).

Despite a lower average price level compared to the prior year, Klöckner & Co generated operating income (EBITDA) before material special effects of €65 million in the second quarter of 2025 (Q2 2024: €42 million). Operating income was thus considerably higher than in the prior-year quarter.

Cash flow from operating activities amounted to €75 million in the second quarter of 2025, compared to cash flow from operating activities of €61 million in the prior-year quarter. Due to net cash outflows for investments in the amount of €31 million (Q2 2024: €21 million), free cash flow came to €44 million in the second quarter of 2025 (Q2 2024: €41 million).

Continued consistent implementation of corporate strategy

Klöckner & Co has further invested in the expansion of electrical steel capacity to meet steeply rising demand in North America. The aim is to reliably meet the current excess demand in the power grid infrastructure, renewable energy and data center sectors. In this connection, a state-of-the-art production and service center has been established to significantly expand the processing of cold-rolled grain-oriented (CRGO) electrical steel, slitting and transformer core production. The new plant is expected to become fully operational in the course of the third quarter of 2025.

In June, Klöckner & Co integrated Ambo Stahl, a Cologne-based company specializing in wear-resistant and high-tensile special steels, ballistic and armor steels. This expansion of the product and service portfolio also taps into new growth potential in the security and defense sector. Klöckner & Co has also acquired Simfloc, a Swiss company specializing in the installation of building services. This step makes Swiss subsidiary Debrunner Koenig Group the first end-to-end provider of building installations in Switzerland, thus opening up new markets.

Outlook

Despite the ongoing challenging macroeconomic environment with heightened uncertainty about forward developments, Klöckner & Co expects a considerable increase in shipments and sales in the third quarter of 2025 compared to the prior-year quarter. This is driven by the continued robust demand in the Kloeckner Metals Americas segment. Additionally benefiting from a higher price level in North America, Klöckner & Co expects considerably higher sales compared to the prior-year quarter. The company is also forecasting a considerable increase in EBITDA before material special effects compared to the prior-year quarter, to between €40 million and €80 million.

For fiscal year 2025, with the weaker than initially expected development in Europe, Klöckner & Co now expects a slight increase in shipments and sales compared to the prior year. The expectation for EBITDA before material special effects has been specified to a forecast range of €170 million to €240 million, which still represents a considerable year-on-year increase. Klöckner & Co also continues to anticipate a significantly positive cash flow from operating activities for the full year, now on par with the prior year.