Stock Markets May 12, 2026 03:03 AM

Salzgitter Holds Elevated 2026 Targets After Robust Q1 Results

Company posts EBITDA far above consensus and reiterates upgraded full-year outlook while noting divisional drivers and exclusions

By Derek Hwang

Salzgitter AG reported a first-quarter 2026 EBITDA of €280 million on April 21, well above analyst consensus, and earnings before tax of €179 million. The quarter was supported by a stronger contribution from Aurubis and solid returns from steel production, trading and technology operations. Management confirmed a raised 2026 EBITDA guidance range of €625 million to €725 million and held an elevated earnings before tax forecast of €200 million to €300 million, excluding the impact of the HKM acquisition and convertible bond valuation movements.

Salzgitter Holds Elevated 2026 Targets After Robust Q1 Results

Key Points

  • Q1 2026 EBITDA of €280 million significantly exceeded the €147 million consensus.
  • Salzgitter kept its upgraded 2026 EBITDA guidance at €625 million to €725 million and maintained an elevated earnings before tax forecast of €200 million to €300 million.
  • Divisional outlooks: steel production expected to deliver higher earnings before tax aided by EU safeguard measures; steel processing to see improved utilization and higher earnings before tax.

Salzgitter AG reported first-quarter 2026 results on April 21 that surpassed market expectations, with consolidated EBITDA of €280 million versus a consensus estimate of €147 million. Earnings before tax for the quarter came in at €179 million, compared with a consensus figure of €48 million.

The company attributed a significant portion of the quarterly outperformance to a higher contribution from Aurubis, which supplied €147 million in the quarter, up from €48 million in the first quarter of 2025. In addition to the Aurubis contribution, the steel production arm generated €89 million, with further contributions coming from the group's trading and technology divisions.

Following the stronger start to the year, Salzgitter maintained the higher full-year targets it announced previously. The 2026 EBITDA guidance remains at €625 million to €725 million, a range that was upgraded from an earlier €500 million to €600 million projection. Management also kept its earnings before tax guidance at €200 million to €300 million, revised upward from a prior range of €75 million to €175 million.

Company executives made clear that the guidance excludes potential effects from the HKM acquisition as well as valuation movements in convertible bonds. Those items are therefore outside the current published outlook.

On a divisional basis, Salzgitter expects the steel production division to post a higher earnings before tax result than in 2025. Management cited improved margins supported by EU safeguard measures as a factor in this outlook, while also noting that recovery in overall EU and German steel demand has been weaker than might be hoped. Despite that softer demand backdrop, the company anticipates moderate improvement in steel sections.

For the steel processing division, Salzgitter is projecting higher earnings before tax and said it expects satisfactory capacity utilization in heavy plate during the first half of 2026. Overall, the group sees higher sales volumes and greater capacity utilization across its operations compared with the prior period.


These results and guidance reiteration underline the company's expectation of improved profitability in 2026, while explicitly isolating certain transactions and valuation effects from the stated targets.

Risks

  • Weaker-than-expected recovery in EU and German steel demand could limit upside for the steel production division - impacts steel and industrial sectors.
  • Guidance excludes effects from the HKM acquisition and convertible bond valuation movements, which could alter consolidated results if realized - impacts corporate financials and investor expectations.
  • Assumed satisfactory capacity utilization in heavy plate during H1 2026 may not materialize, affecting steel processing margins and volumes - impacts manufacturing and downstream customers.

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