Weak performance in the steel production and processing segments weighed on results, while the technology division and contributions from subsidiaries partially offset the downturn. Declining demand and elevated energy prices continued to exert pressure on shipment volumes and product pricing.
Despite this environment, Salzgitter exceeded its cost-reduction targets under the P28 programme, achieving EUR 110 million in savings in 2025.
CEO Gunnar Groebler emphasized the company’s commitment to its strategic transformation despite adverse market conditions, stating: “We are continuing our transformation journey with determination despite a challenging economic environment. The transition to low-carbon production is critical for our long-term competitiveness.”
At the core of the company’s decarbonisation strategy is the SALCOS® (Salzgitter Low CO₂ Steelmaking) programme, which foresees a phased transition from conventional blast furnace-based production to hydrogen-based direct reduced iron (DRI) and electric arc furnace (EAF) technology. The first phase includes the construction of a direct reduction plant and an integrated electric arc furnace to replace existing blast furnace capacity.
The initial phase has been postponed to the first half of 2027, primarily due to uncertainties related to energy infrastructure, hydrogen supply availability, and investment costs. Progress of the project is largely dependent on the availability of competitively priced green hydrogen and the timely deployment of required energy infrastructure.
Upon completion, SALCOS® is expected to significantly reduce Salzgitter’s carbon emissions in stages. In its final phase, the programme aims to eliminate the majority of CO₂ emissions from steel production, positioning it as one of Europe’s most comprehensive green steel initiatives.
The strategy also includes increased scrap utilisation, a higher share of electrically based production, and stronger integration of renewable energy sources. Through this transformation, the company aims to reduce carbon-related costs while ensuring compliance with European Union carbon regulations.
Despite weak financial results, Salzgitter’s share price increased by approximately 153% in 2025, reaching EUR 40.14. Management has adopted a cautiously optimistic outlook for 2026 and announced plans to distribute a dividend of EUR 0.20 per share.
Overall, while Salzgitter’s 2025 financial performance reflects operational headwinds, cost optimisation measures and strategic transformation investments partially mitigated the negative impact. Despite delays in the SALCOS® programme, the company’s continued commitment to low-carbon steel production underscores its long-term competitiveness strategy. In the short term, energy costs and weak demand remain key risks, while the progress of transformation investments will be decisive for Salzgitter’s medium- to long-term performance.
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