Salzgitter AG shares fell approximately 7% in German trading following the company’s announcement of a narrower loss for fiscal 2025, reporting a net loss of €74.2 million compared to €352.2 million the previous year. Despite the loss, Salzgitter maintained its dividend at €0.20 per share and provided a positive outlook for fiscal 2026, projecting revenue growth to around €9.5 billion and EBITDA VX between €500 million and €600 million.
The company’s improved performance was largely driven by its Technology Business Unit and a stake in Aurubis AG, alongside significant cost-cutting measures that yielded €129 million in savings. However, a decline in revenue to €8.98 billion, attributed to lower steel prices and the deconsolidation of a business unit, highlights ongoing challenges in the steel sector amid economic uncertainty and high energy costs.
For market professionals, the key takeaway is Salzgitter’s focus on restructuring and cost management, which may position the company for recovery in the upcoming fiscal year, despite current market pressures.
Source: nasdaq.com