SSAB Q2 operating profit fell to SEK 2.1B from SEK 3.4B a year ago, as steel prices dropped 11% per tonne. The Swedish producer sees no demand recovery before 2027.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
SSAB's second-quarter earnings fell short of year-ago levels as steel prices declined across its core European and American markets, the Swedish producer said Tuesday.
Operating profit for the three months through June came in at SEK 2.1 billion, down from SEK 3.4 billion in the same period last year. Revenue dropped 12% to SEK 27.8 billion, driven by lower selling prices in both its special steels and strip products divisions.
The company's Americas segment saw operating profit fall to SEK 1.1 billion from SEK 1.7 billion, while the Europe division posted SEK 900 million, down from SEK 1.3 billion. SSAB cited softer demand from construction and heavy transport sectors, particularly in Europe, where steel prices have lagged the broader industrial recovery.
Shipments held relatively steady at 1.45 million tonnes, compared with 1.48 million tonnes a year earlier, suggesting the revenue decline was almost entirely price-driven. SSAB's average selling price per tonne fell roughly 11% year on year.
The company maintained its full-year outlook for global steel demand to remain flat to slightly lower, with a recovery not expected before early 2027. SSAB said it would continue to focus on cost cuts and high-margin speciality products rather than chase volume in a weak pricing environment.
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