Outokumpu Misses Q2 Profit Estimates on European Weakness

Outokumpu reported second-quarter adjusted earnings that missed analyst expectations, as challenges in its European business overshadowed strong results in the Americas. The stainless steel manufacturer posted an adjusted EBITDA of €100 million, falling 17% short of the €120 million consensus estimate, according to figures released on July 30, 2026.

Second-Quarter Performance

While the Q2 result was below market forecasts, it marked a sequential improvement from the €65 million in adjusted EBITDA recorded in the first quarter of 2026. The company attributed this quarter-over-quarter growth to better profitability in its Europe business area.

Key operational figures for the second quarter include:

• Stainless steel shipments increased by 5% compared to the previous quarter, landing at the lower end of the company's 5% to 10% guidance.
• Ferrochrome shipments saw a 4% increase quarter-over-quarter.
• The company generated a positive free cash flow of €51 million, aided by €20 million in working capital inflows.

Diverging Regional Results

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The company's overall performance was a tale of mixed results across its primary business segments. The Americas division outperformed expectations, while the European unit lagged significantly.

• The Europe business area posted an adjusted EBITDA of €17 million, substantially below the €45 million consensus. Outokumpu stated that higher shipment volumes and prices were offset by an unfavorable product mix and rising variable costs.
• The Americas division delivered an adjusted EBITDA of €53 million, surpassing the €49 million analyst estimate. Higher prices compensated for a 3% decline in shipments in the region, where demand was supported by industrial activity.
• The Ferrochrome segment reported an adjusted EBITDA of €37 million, which was in line with the €36 million consensus. Its performance was impacted by higher electricity prices and a new Finnish mining tax.

Outlook and Restructuring

Looking ahead to the third quarter of 2026, Outokumpu anticipates a seasonal slowdown, forecasting a decrease in group shipments of 0% to 10% quarter-over-quarter. Despite the expected drop in volume, the company projects its adjusted EBITDA will remain stable compared to the second quarter. It also expects to realize gains from raw material-related inventory and metal derivatives in Q3.

Meanwhile, the company's restructuring program is proceeding as planned. Outokumpu confirmed it is on track to achieve 50% of its targeted €100 million in cost savings by the end of 2026.