The company reported that its net profit declined by nearly 100% due to weak steel demand in Russia.
According to the statement, Severstal’s net profit decreased from 21.1 billion rubles in the first quarter of 2025 to 57 million rubles (approximately $761,523) in the same period of 2026. The company stated that the 15% decline in domestic steel demand played a significant role in this sharp decrease.
According to the financial results, the company’s revenues declined by 19% year-on-year in the first quarter to 145.3 billion rubles, while earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 54% to 17.94 billion rubles.
Severstal also announced that its board of directors recommended not paying dividends for the first quarter of 2026 due to weakening demand and negative free cash flow.
It was stated that, in addition to the contraction in domestic demand, weakening market conditions also contributed to the decline in the company’s financial performance.
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