Klöckner & Se Stock Earnings Reports

Kloeckner & Co reported a solid Q3 2025 despite a challenging market and falling U.S. steel prices. Shipments rose slightly to 1,440 tonnes driven by strong performance in Americas; sales were EUR 1.6bn (down slightly YoY) due to lower average prices. Gross profit and gross margin improved materially versus Q3 2024, and EBITDA before material special effects increased to EUR 43m, in line with guidance. Key drivers: continued shift toward higher value‑added and service‑center businesses (share rose from 63% in 2019 to 81% YTD 2025, or 87% excluding the 8 U.S. sites to be sold), strategic M&A (NMM, IMS, Sol Components, Amerinox) and portfolio optimization including announced divestments of 8 U.S. distribution sites (7 expected to Russell Metals for ~USD 119m) to reallocate capital to higher‑margin activities. Q3 operating cash flow was negative EUR 118m due to a temporary net working capital build (mainly trade payables/receivables in Americas tied to Q2 orders); management expects this to reverse in Q4 and to deliver a significantly positive OCF for full‑year 2025. Net debt rose to ~EUR 1.03bn but liquidity and financing remain diversified with unused lines and an extended ABS program. Regional outlook: North America shows destocking and near‑term weakness but select end markets (energy, infrastructure, defense) are solid; Europe remains weak short‑term but self‑help measures are improving profitability and Europe delivered a positive EBITDA contribution for the first time since 2023. Full‑year EBITDA before material special effects guidance unchanged at EUR 170m–240m, with management indicating results are tracking the lower end of that range.