Russia-based steelmaker MMK Group has announced its operating and financial results for the first quarter of 2026, pointing to weaker performance both quarter on quarter and year on year amid slower business activity in the domestic market and seasonal factors.
In the first quarter, MMK’s pig iron production declined by 5.5 percent quarter on quarter to 2.38 million mt due to major blast furnace repairs, while crude steel output decreased by 3.8 percent to 2.45 million mt. The company’s finished steel sales totaled 2.25 million mt, down 8.5 percent year on year, reflecting seasonal weakness and the ongoing slowdown in Russia’s steel market. Premium product sales fell by 10.9 percent year on year to 908,000 mt, mainly due to lower demand for cold rolled and coated products, with their share in total sales decreasing to 40.4 percent.
On a year-on-year basis, pig iron production increased by 9.1 percent thanks to fewer maintenance outages, while steel output declined by 4.9 percent. Steel product sales dropped by 7.4 percent compared to the same period last year, amid unfavorable market conditions. Premium product sales decreased by 10.3 percent year on year, primarily due to reduced shipments of thick plate from the 5000 rolling mill. Meanwhile, coal concentrate production rose by 18.6 percent quarter on quarter to 787,000 mt, but edged down 1.6 percent year on year.
Regarding financial performance, MMK reported revenue of RUB 129.03 billion ($1.40 billion) in the first quarter, decreasing by 11.5 percent quarter on quarter due to lower sales volumes and changes in the sales mix. EBITDA dropped sharply by 55.9 percent to RUB 8.62 billion ($93 million), with an EBITDA margin of 6.7 percent. The company recorded a net loss of RUB 1.37 billion ($14.8 million) in the given quarter, compared to a profit in the previous quarter, mainly due to declining revenues.
In addition, free cash flow stood at negative RUB 14.14 billion (-$153 million), largely as a result of reduced EBITDA and increased working capital outflows.
Compared to the first quarter of 2025, MMK’s revenue fell by 18.6 percent, while EBITDA decreased by 56.4 percent, reflecting weaker pricing and demand conditions in the Russian steel market.