The company significantly increased its net profit compared to the same period last year, reaching EUR 2 million. Having reported a net loss of EUR 23 million in the same period last year, the company thus achieved a significant recovery. Earnings per share amounted to EUR 0.02 (Q2 2024: EUR 0.23 loss).
Record in North America, Sluggishness in Europe
Klöckner & Co shipped a total of 1.2 million tons in the second quarter of 2025, maintaining the same volume as in the same quarter last year. Despite general market conditions, shipments reached record levels in North America, while weak demand in Europe negatively impacted deliveries in that region.
Sales revenue decreased to EUR 1.6 billion due to falling prices (Q2 2024: EUR 1.8 billion). However, despite price pressures, the company achieved an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of 65 million euros, significantly exceeding the EUR 42 million level from the same quarter of the previous year.
Strong Financial Position with Positive Cash Flow
The company's cash flow from operations reached EUR 75 million in the second quarter of 2025. This figure is above the EUR 61 million recorded in the same period of the previous year. Despite a net cash outflow of EUR 31 million due to investments, free cash flow amounted to EUR 44 million (Q2 2024: EUR 41 million).
CEO Kerkhoff: “Our Strategic Approach is Driving Sustainable Growth”
Guido Kerkhoff, CEO of Klöckner & Co SE, attributed the company's success in the second quarter to its strategic direction. Kerkhoff stated, “By increasing our electrical steel capacity and making targeted acquisitions, we are unlocking new potential and strengthening our position as a leading metal processing company. This means we are paving the way for sustainable and profitable growth and accelerating Klöckner & Co’s transformation in our core markets of North America and Europe.”
Investment Push in Electrical Steel
The company has accelerated its investments in electrical steel capacity, particularly to meet growing demand in North America. The newly established high-tech production and service facility will provide services in areas such as cold-rolled grain-oriented (CRGO) electrical steel processing, slitting, and transformer core production. The facility is scheduled to reach full capacity by the third quarter of 2025.
Portfolio Expands with New Acquisitions
In June, Klöckner & Co acquired Ambo Stahl, based in Cologne. Specializing in wear-resistant and high-tensile steel, this acquisition facilitates the company's access to new growth areas, particularly in the defense and security sectors.
Additionally, the acquisition of Swiss building services company Simfloc through Debrunner Koenig Group has strengthened Klöckner & Co's position in the Swiss market. With this move, the company has become the first firm in Switzerland to offer end-to-end building installation solutions.
Strong Outlook for 2025 and Beyond
Despite the ongoing uncertainty in the macroeconomic environment, Klöckner & Co has a positive outlook for the third quarter of 2025. The company anticipates a significant increase in shipments and sales, particularly due to strong demand and price advantages in the North American market. Adjusted EBITDA for the third quarter of 2025 is expected to be between EUR 40 and 80 million.
For the full year, despite the relatively weak performance in the European market, a slight increase in shipments and sales is targeted. The company's adjusted annual EBITDA forecast is set at between EUR 170 and 240 million. Klöckner & Co also expects to generate positive cash flow from operational activities throughout the year.
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