Salzgitter Group reports a positive first half of 2026
- Strong growth in the steel production, trading and technology business areas
- The result was significantly influenced by the high contribution of the Aurubis stake.
- The P28 earnings improvement program achieves additional effects of €97 million.
The Salzgitter Group recorded a pleasing performance in the first half of 2026. Key drivers were an exceptionally strong contribution from the Aurubis investment and significant earnings improvements in our steel production, trading, and technology business units compared to the same period of the previous year. Geopolitical uncertainties, particularly as a result of the war in the Middle East, impacted steel-related activities. The P28 earnings improvement program also made a significant contribution to earnings with additional savings of €97 million. The Group’s net financial position amounted to -€792 million at the end of June. Despite the continued high level of ongoing investments, especially in connection with the first phase of our SALCOS® decarbonization program, it remained stable compared to the previous year.
Salzgitter Group’s external sales in the first half of 2026 amounted to €4.6 billion (H1 2025: €4.7 billion), slightly below the prior-year level. EBITDA VX, at €459.0 million (H1 2025: €116.8 million), and EBT VX (€257.6 million; H1 2025: -€83.8 million) both significantly exceeded the comparative figures. This result includes a €193.0 million contribution (H1 2025: €71.5 million) from the equity-accounted (IFRS accounting) investment in Aurubis AG. Including valuation effects from the convertible bond into shares of Aurubis AG amounting to -€181.3 million, the Salzgitter Group generated €277.7 million in EBITDA (H1 2025: €116.8 million) and €76.3 million in profit before taxes (H1 2025: -€83.8 million). A net loss after taxes of €43.5 million (H1 2025: -€88.9 million) resulted in earnings per share of €0.74 (H1 2025: -€1.68). The return on invested capital excluding earnings effects related to the valuation of the convertible bond (ROCE VX) increased significantly to 8.6% (H1 2025: -1.6%).
Due to the numerous geopolitical uncertainties, the predictability of both further economic developments and the valuation of listed assets remains limited in the second half of the year. Overall, we continue to expect only a moderate improvement in the economic environment. Nevertheless, we anticipate positive momentum from EU trade defense measures later in the year. Based on business performance in the first half of 2026 and taking into account the effects of the change in the scope of consolidation following the completion of the acquisition of Hüttenwerke Krupp Mannesmann GmbH (HKM), we now expect the following for the Salzgitter Group in fiscal year 2026:
- a turnover of approximately €10.0 billion,
- an EBITDA VX between €725 million and €825 million
- an EBT VX between €325 million and €425 million as well as
- a return on capital employed VX (ROCE VX) slightly above the previous year’s level.
Subject to one-off earnings effects from the purchase price allocation, the full consolidation of HKM is expected to contribute an additional amount in the mid-double-digit millions of euros to EBITDA VX and EBT VX for 2026. External sales are expected to increase by a mid-three-digit million-euro amount. These assumptions are included in the forecast above.
Since the valuation of the exchangeable bond issued in October 2025 can lead to non-operating and sometimes significant fluctuations in earnings, the Group’s forecast has been based on adjusted key performance indicators since fiscal year 2026. The calculation of EBT VX (Earnings before Taxes and Valuation Exchangeable), EBITDA VX (Earnings before Interest, Taxes, Depreciation, Amortization and Valuation Exchangeable), and ROCE VX (Return on Capital Employed) eliminates the earnings effects related to the valuation of the exchangeable bond.
Chairman of the Board Gunnar Groebler commented as follows:
“The first six months of fiscal year 2026 were significant and groundbreaking for the Salzgitter Group. Despite persistently challenging economic conditions and geopolitical uncertainties, we achieved a pleasing result. Furthermore, we carefully prepared the complete acquisition of Hüttenwerke Krupp Mannesmann GmbH in the first half of the year and successfully completed it shortly after the end of the second quarter. This step strengthens our position in the steel business. At the same time, the sale of Klöckner DESMA Elastomertechnik represents another step in our active portfolio management.”
Chief Financial Officer Birgit Potrafki adds:
“The first-half results were outstanding given the adverse market conditions. Our Aurubis investment once again made a strong contribution to earnings, and the good progress of our performance and restructuring programs further improved our performance. Our earnings improvement program P28 generated a sustainable effect of €97 million by the end of June. This means that we have already achieved the majority of our full-year target of €122 million for 2026 by mid-year and underscore the high effectiveness of our measures. Since the program began, the sustainable effects have already totaled almost €350 million of the long-term target of €575 million. The strong business performance in the first half of the year and the effects from the full integration of HKM led us to raise our forecast for fiscal year 2026 again in mid-July. The outlook for our financial position is equally positive: Despite the full acquisition of HKM, we confirm our expectation of net financial debt of just over €1 billion at the end of 2026.”
As in previous years, we would like to point out that opportunities and risks arising from currently unforeseeable developments in revenue, raw material prices and employment, as well as changes in exchange rates, could significantly influence the course of business in 2026.