Outokumpu reported adjusted EBITDA of €65 million for the first quarter of 2026, marking a substantial improvement from €10 million in the fourth quarter of 2025 but falling short of the €72 million analysts had anticipated.
The Finnish stainless steel producer said stainless steel shipments rose 27% quarter-over-quarter, exceeding the company guidance range of 20-30%. Management attributed the rise to seasonal demand and changes tied to the Carbon Border Adjustment Mechanism - a development that coincided with a near-halving of cold-rolled imports during the quarter.
Company commentary highlighted that freight costs were influenced by disruptions in the Middle East, which affected logistics expenses during the period.
Performance varied by region. In the Europe business area, shipments were up 46% quarter-over-quarter, yet the division's results came in below expectations. The company said low selling prices and a high share of backlog deliveries, which typically carry lower margins, weighed on profitability. Additionally, raw materials-related inventory and metal derivatives produced a negative €11 million impact on results in Europe.
By contrast, the Americas business area reported stronger-than-expected profitability, generating €52 million in EBITDA versus a consensus of €39 million. The company said higher selling prices in the Americas helped to offset rising costs. Shipments in the region increased 3% quarter-over-quarter, and raw materials and metal derivatives contributed a €13 million positive effect.
Ferrochrome deliveries were also higher, rising 17% quarter-over-quarter on demand from Europe and the United States. The ferrochrome division recorded €30 million in EBITDA, which missed the consensus expectation of €36 million.
On cash flow, Outokumpu generated €34 million of positive free cash flow for the quarter. This was supported by working capital inflows of €57 million and capital expenditure of €49 million.
Looking forward, the company expects second-quarter shipments to rise between 0% and 10% quarter-over-quarter, with the increase attributed to seasonal trends and regulatory tailwinds. Outokumpu said gains related to raw material inventory and metal derivatives are expected to be realized in the second quarter, and management anticipates higher EBITDA sequentially.
The company also provided an update on its cost reduction program. Restructuring measures are progressing as planned, and Outokumpu expects to achieve 50% of its targeted €100 million in cost savings by the end of 2027 within the 2026 calendar year.
Contextual note: The company results show a mix of operational improvements and ongoing margin pressure in Europe, even as other areas counterbalance with stronger pricing or derivative gains. The figures reflect a quarter of recovery from a low Q4 baseline but include components that pulled results below analyst consensus.