Outokumpu Rebounds to Q1 Profit on Lower Costs and Ferrochrome Gains

Outokumpu

European cost savings and strong ferrochrome drive Outokumpu’s recovery

Outokumpu rebounds to Q1 profit after posting a loss in the previous quarter, driven by cost reductions and robust ferrochrome performance. The Finnish stainless steel producer reported a 29% year-on-year increase in adjusted EBITDA, reaching €49 million in Q1 2025, compared to a loss of €3 million in Q4 2024.

Ferrochrome unit leads growth despite U.S. headwinds

Outokumpu’s ferrochrome unit nearly doubled its EBITDA to €43 million, supported by higher prices and strong external demand. European operations also improved, with EBITDA rising to €6 million. However, the Americas segment saw a 54% drop in EBITDA to €11 million, reflecting ongoing regional cost pressures. Stainless steel deliveries rose 6% year-on-year to 470,000 tonnes, although realized prices declined across both regions.

Outlook improves, but geopolitical and cost risks persist

Despite a €15 million impact from a union strike in Finland, the Q1 cost hit was smaller than last year’s €30 million loss. Outokumpu expects stainless steel deliveries to grow by up to 10% in Q2, but a €10 million impact from scheduled ferrochrome maintenance is anticipated. The company also warned that global tariffs and geopolitical instability could affect future pricing and profitability. Still, Q2 adjusted EBITDA is projected to be equal to or higher than Q1.

The Metalnomist Commentary

Outokumpu’s return to profitability reflects its operational agility in Europe and the strategic advantage of in-house ferrochrome supply. However, declining U.S. margins and external risks highlight the need for regional diversification and cost discipline in a volatile trade environment.