published on 04/30/2025 at 06:58 from APERAM (isin : LU0569974404)

Aperam - First quarter 2025 results : “Solid start into 2025 despite lack of economic tailwind”

Aperam S.A. / Key word(s): Quarter Results
Aperam - First quarter 2025 results : “Solid start into 2025 despite lack of economic tailwind”

30-Apr-2025 / 06:58 CET/CEST

First quarter 2025 results1

“Solid start into 2025 despite lack of economic tailwind”

Luxembourg, April 30, 2025 (07:00 CEST) - Aperam S.A. (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris, Brussels: APAM, NYRS: APEMY), announced today results for the three months ended March 31, 2025.

Highlights

Health and Safety: LTI frequency rate of 1.7x in Q1 2025 compared to 1.2x in Q4 2024

Shipments of 575 thousand tonnes in Q1 2025, 14% increase compared to shipments of 505 thousand tonnes in Q4 2024

Adjusted EBITDA of EUR 86 million in Q1 2025, compared to Adjusted EBITDA of EUR 116 million in Q4 2024
Net result and Basic earnings per share
- Excluding Universal2, Pro Forma net income of EUR 7 million and Pro Forma Basic earnings per share of EUR 0.09 in Q1 2025
- Net loss of EUR (18) million and Basic earnings per share of EUR (0.24) in Q1 2025, compared to Net income of EUR 12 million and Basic earnings per share of EUR 0.17 in Q4 2024
Free cash flow before dividend amounted to EUR (574) million in Q1 2025, after EUR (415) million1a paid for the acquisition of Universal, compared to EUR 146 million in Q4 2024

Net financial debt of EUR 1,235 million as of March 31, 2025, including EUR 517 million for the absorption of the enterprise value of Universal, compared to EUR 544 million as of December 31, 2024

Strategic initiatives

Leadership Journey®3 Phase 5: Gains reached EUR 21 million in Q1 2025 and a cumulative EUR 116 million versus target gains of EUR 200 million over the period 2024 to 2026

Prospects[1]b

Q2 2025 adjusted EBITDA is expected at a higher level versus Q1 2025
We expect Q2 2025 net financial debt to decrease

Timoteo Di Maulo, CEO of Aperam, commented:

“While the start to the year was full of political surprises Aperam delivered as promised. We closed the acquisition of Universal in record time, and our quarterly earnings, cash flow and debt numbers fully matched guidance. Reliable projections for the remainder of the year are challenging in the current volatile environment. What we can promise is a flexible and resilient company that lives up to its track record of delivering shareholder value. Universal strengthens and stabilizes our earnings profile but it also makes generating cash for paying the dividend and reducing leverage - now our number one financial priority.“

Financial Highlights (on the basis of financial information prepared under IFRS)

(in millions of Euros, unless otherwise stated)	Q1 25	Q4 24	Q1 24
Sales	1,658	1,471	1,657
Operating income / (loss)	(11)	64	(3)
Net income / (loss) attributable to equity holders of the parent	(18)	12	(19)
Basic earnings per share (EUR)	(0.24)	0.17	(0.26)
Diluted earnings per share (EUR)	(0.24)	0.17	(0.26)

Free cash flow before dividend	(574)	146	(141)
Net Financial Debt (at the end of the period)	1,235	544	674

Adj. EBITDA	86	116	55
Exceptional items(1)	(36)	2	—
EBITDA	50	118	55

Adj. EBITDA/tonne (EUR)	150	230	94
EBITDA/tonne (EUR)	87	234	94

Shipments (000t)	575	505	585

(1) In Q1 2025, exceptional items primarily relate to the non-cash reversal of the fair value adjustment of inventories related to the acquisition of Universal.

Health & Safety results

Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate was 1.7x in the first quarter of 2025 compared to 1.2x in the fourth quarter of 2024.

It is with deepest regret that we deplore the loss of a Universal employee in a fatal accident on 17 March 2025 at the newly acquired facility of Dunkirk, NY, United States.

Financial results analysis for the three-month period ending March 31, 2025

Sales for the first quarter of 2025 increased by 12.7% at EUR 1,658 million, compared to EUR 1,471 million for the fourth quarter of 2024. Shipments increased from 505 thousand tonnes in the fourth quarter of 2024 to 575 thousand tonnes in the first quarter of 2025, due to seasonally higher steel, scrap and charcoal shipments.

Adjusted EBITDA decreased during the quarter to EUR 86 million (excluding an exceptional loss of EUR (36) million) from EUR 116 million (excluding an exceptional gain of EUR 2 million). Major drivers were a negative valuation effect, price & mix effect and seasonally lower shipments in Brazil, partly balanced by the first time consolidation of Universal.

Depreciation and amortization expense was EUR (61) million for the first quarter of 2025.

Aperam had an operating loss for the first quarter of 2025 of EUR (11) million compared to an operating income of EUR 64 million for the previous quarter.

Financing costs, net, including the FX and derivatives result for the first quarter of 2025 were EUR (22) million. Cash cost of financing was EUR (15) million during the quarter.

Income tax benefit for the first quarter of 2025 was EUR 17 million.

The Pro Forma net result for the first quarter of 2025, excluding Universal contribution, was a profit of EUR 7 million. The net result for the first quarter of 2025 was a loss of EUR (18) million, compared to a profit of EUR 12 million for the fourth quarter of 2024.

Cash flows from operations for the first quarter of 2025 were negative at EUR (105) million, including a working capital increase of EUR 161 million. CAPEX for the first quarter was EUR (45) million.

Free cash flow before dividend for the first quarter of 2025 was negative at EUR (574) million, compared to an amount of EUR 146 million for the fourth quarter of 2024.

During the first quarter of 2025, cash returns to shareholders amounted to EUR 36 million, fully consisting of dividends.

Operating segment results analysis

Stainless & Electrical Steel (1)

(in millions of Euros, unless otherwise stated)	Q1 25	Q4 24	Q1 24
Sales	1,069	994	1,022
Adjusted EBITDA	28	42	6
Exceptional items	—	11	—
EBITDA	28	53	6
Depreciation & amortization	(27)	(28)	(27)
Operating income / (loss)	1	25	(21)
Steel shipments (000t)	421	401	415
Average steel selling price (EUR/t)	2,417	2,382	2,358

(1) Amounts are shown prior to intra-group eliminations

The Stainless & Electrical Steel segment had sales of EUR 1,069 million for the first quarter of 2025. This represents a 7.5% increase compared to sales of EUR 994 million for the fourth quarter of 2024. Steel shipments during the first quarter were 421 thousand tonnes, an increase of 5.0% compared to shipments of 401 thousand tonnes during the previous quarter. Shipments in Brazil were seasonally lower but reached a solid level. In Europe shipments improved seasonally. Average steel selling prices for the Stainless & Electrical Steel segment increased by 1.5% compared to the previous quarter.

The segment generated an Adjusted EBITDA of EUR 28 million for the first quarter of 2025 compared to an Adjusted EBITDA of EUR 42 million (excluding an exceptional gain of EUR 11 million) for the fourth quarter of 2024. EBITDA decreased due to intensive pricing pressure in Europe.

Depreciation and amortization expense was EUR (27) million for the first quarter of 2025.

The Stainless & Electrical Steel division had an operating profit of EUR 1 million for the first quarter of 2025 compared to an operating profit of EUR 25 million for the fourth quarter of 2024.

Services & Solutions (1)

(in millions of Euros, unless otherwise stated)	Q1 25	Q4 24	Q1 24
Sales	643	553	616
EBITDA	13	4	15
Depreciation, amortization & impairment	(4)	(5)	(4)
Operating income / (loss)	9	(1)	11
Steel shipments (000t)	207	169	201
Average steel selling price (EUR/t)	2,968	3,071

Adjusted EBITDA First Quarter Aperam Shipments 2025 Results

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