Russia-based steelmaker MMK Group has announced its operating and financial results for the second quarter and first half of 2026, indicating a quarter-on-quarter recovery in steel production and sales amid seasonally stronger demand, while lower selling prices continued to weigh on its first-half financial performance.
In the second quarter, MMK's pig iron production declined by 4.8 percent quarter on quarter to 2.27 million mt due to major blast furnace repairs, while crude steel output increased by 12.2 percent to 2.75 million mt. The company's finished steel sales rose by 23.5 percent to 2.78 million mt amid a gradual recovery in business activity, while premium product sales increased by 25.8 percent to 1.14 million mt, supported by improved demand from the construction sector, with their share in total sales rising to 41.1 percent. Meanwhile, coal concentrate production fell by 2.6 percent to 767,000 mt.
In the first half, MMK's pig iron production increased by 2.0 percent year on year to 4.65 million mt due to fewer blast furnace repairs, while crude steel output remained stable at 5.19 million mt. Finished steel sales rose by 2.1 percent to 5.02 million mt, reflecting higher shipments of semifinished products, long products and premium products despite lower hot rolled steel sales, while premium product sales increased by 2.3 percent to 2.05 million mt amid stronger sales of cold rolled, coated and pipe products.
Regarding financial performance, MMK reported second-quarter revenue of RUB 153.29 billion ($1.96 billion), up 18.8 percent quarter on quarter due to higher sales volumes following the seasonal demand recovery, while EBITDA almost doubled to RUB 16.09 billion ($205.8 million), with an EBITDA margin of 10.5 percent. Nevertheless, the company recorded a net loss of RUB 17.74 billion ($226.4 million), mainly due to a RUB 20.23 billion impairment charge related to its coal mining segment amid challenging macroeconomic conditions. Free cash flow amounted to RUB 16.76 billion ($214.3 million), supported by higher EBITDA and working capital inflows.
In the first half, MMK's revenue declined by 10.0 percent year on year to RUB 282.31 billion ($3.61 billion) due to lower selling prices, while EBITDA fell by 40.9 percent to RUB 24.71 billion ($315.9 million). The company posted a net loss of RUB 19.11 billion ($244.3 million), while its free cash flow increased to RUB 2.62 billion ($33.3 million), mainly owing to lower capital expenditures.
