Germany-based steelmaker Salzgitter Group has stated in its financial report for the first nine months of this year that the given period was characterized by subdued economic activity and persistently weak demand in Germany and Europe, amid geopolitical uncertainties, particularly due to the ongoing conflict in the Middle East. Nevertheless, the company reported significantly improved earnings, supported by the performance of its business units and a strong contribution from its stake in Aurubis. Salzgitter also noted that revised EU trade defense measures and the introduction of the Carbon Border Adjustment Mechanism (CBAM) improved the competitive conditions for European steel producers.
To future-proof its position, the company noted that it continued to implement its “P28” profit improvement program. The program is designed to improve the performance of its business units in a sustainable way. By 2028, the company expects to see an overall effect of €575 million from efficiency and process improvements in procurement, logistics, sales and technology, including measures taken from the previous Performance 2026 program. In the first nine months of 2026, the P28 program generated €146 million in sustainable earnings improvements, exceeding the company's full-year target of €122 million. Since the program was launched in 2024, cumulative improvements have reached approximately €390 million, including €134 million from the previous program.
In the first nine months, the company reported a net profit of €177.2 million, compared to a net loss of €46.5 million in the same period of the previous year, while its sales revenues amounted to €7.33 billion, up by 6.8 percent year on year. Salzgitter's EBITDA in the given period increased to €534.9 million, compared to €224 million in the first nine months of 2025. Salzgitter attributed the increase in sales primarily to the full consolidation of Hüttenwerke Krupp Mannesmann GmbH (HKM) following its complete acquisition in July 2026, as well as higher selling prices.
Meanwhile, Salzgitter's crude steel production totaled 4.90 million mt in the first nine months, increasing by 11.3 percent year on year. The increase was mainly attributable to the full consolidation of HKM. The company's rolled steel production rose by 1.6 percent year on year to 3.40 million mt, while steel shipments increased by 11.3 percent to 4.81 million mt.
Regarding its investments, Salzgitter stated that construction work under the first stage of its SALCOS® decarbonization program continued to progress. The company is building a direct reduction plant, a 100 MW electrolysis plant and an electric arc furnace at its Salzgitter site, with the new facilities expected to have an annual production capacity of approximately two million mt of low-carbon crude steel. The first steel from the new production route is scheduled to become available in the second half of 2027. In addition, HKM began implementing its electric arc furnace investment in Duisburg in August 2026. The new furnace, with an annual capacity of up to 2.5 million mt, is scheduled for completion in 2029, while HKM's Blast Furnace A was permanently decommissioned at the end of the third quarter of 2026.
As for the full year, the company expects its sales revenues to be around €10 billion, while its EBITDA VX forecast has been raised to between €800 million and €875 million, compared to the previous forecast of €725-825 million. Salzgitter also expects adjusted earnings before taxes to range between €400 million and €475 million.
