Subdued Sales, Stark Slump & Strategic Specification

Salzgitter AG released preliminary figures showing external sales of €4.7 billion for the first half of 2025, down from €5.2 billion in the same period last year. EBITDA fell to €116.8 million from €233.6 million, while earnings before taxes shifted sharply to a loss of €–83.8 million compared to a profit of €11.5 million last year. Commenting on the decline, the Executive Board acknowledged “challenging conditions in European steel markets, combined with ongoing global macroeconomic headwinds, have weighed on volumes and margins.” Despite the downturn, a steady contribution of €71.5 million from Salzgitter’s participating investment in Aurubis AG, accounted for using the equity method, provided partial support.

Profit Program, P28 Pivot & Purposeful Planning

Faced with persistently weak demand, Salzgitter’s Executive Board revised its guidance for 2025. Full-year external sales are now forecast between €9.0 billion and €9.5 billion, lower than the previous estimate of €9.5–10.0 billion. EBITDA expectations have narrowed to €300–400 million, down from €350–550 million, and pre-tax results are projected in a tighter range of €–100 million to €0 million, compared to the earlier broader range of €–100 million to €+100 million. “The adjustment reflects a realistic view of the current market,” stated the Executive Board. “At the same time, our profit improvement program P28 and restructuring measures continue to progress as planned.” The Board added that the Group is prioritising operational excellence and cost discipline to stabilise performance.

Earnings Erosion, Equity Effects & External Environment

For the second quarter of 2025, Salzgitter recorded external sales of €2.3 billion, compared to €2.6 billion in the second quarter of 2024. EBITDA slipped to €38.2 million from €107.3 million, and pre-tax results moved further into negative territory at €–56.5 million, versus €–5.7 million last year. The Group acknowledged these preliminary earnings figures fell below the average of analyst estimates. “The figures illustrate the pressure from sluggish demand and a competitive pricing environment,” said a company spokesperson. Analysts note that high input costs and cautious customer orders have weighed on profitability, while steel inventories across Europe remain higher than seasonal norms.

Resilient Returns, Rationalised Risks & Revised Roadmap

Despite a difficult first half, Salzgitter’s Executive Board still forecasts a return on capital employed that is slightly higher than the previous year. “Our internal measures are making a difference,” the statement read, citing tighter cost control, digital process upgrades and workforce optimisation as part of the broader profit improvement program P28. The Board added, “We do not currently see a notable market recovery in the second half, but our focus on internal efficiency remains steadfast.” The Group continues to assess production volumes and investment plans to protect liquidity and maintain strategic flexibility.

Aurubis Alliance, Accounting Adjustments & Aggregate Assets

Salzgitter’s participating investment in Aurubis AG remains a pillar of financial stability, contributing €71.5 million in the first half of 2025, compared to €70.6 million a year earlier. The Group values this steady equity income, noting that Aurubis’ focus on copper recycling and non-ferrous metallurgy helps balance Salzgitter’s exposure to steel cycles. In addition to its steel operations, Salzgitter also benefits from its trading, technology and tubular products divisions, which help spread risk across multiple industrial markets.

Stock Signals, Supportive Statistics & Strategic Sentiment

Salzgitter AG trades on the Frankfurt Stock Exchange under the ticker SZG. As of the latest session, the stock price stands at €19.40, down –0.8% day on day.• Support & Resistance Levels: Analysts see technical support near €19.00, with resistance around €20.50 as markets adjust to the updated outlook.• Simple Moving Average (SMA): The 50-day average is near €19.60, and the 200-day average sits around €21.00, suggesting a cautious trend as the price remains below both.• Relative Strength Index (RSI): At 45, the indicator shows neutral momentum, with no clear overbought or oversold signal.• Moving Average Convergence Divergence (MACD): A recent negative crossover signals weakening momentum.• Bollinger Bands: The stock price hovers near the lower band, pointing to possible volatility if sentiment shifts.• Fibonacci Retracement & Extensions: Analysts watch for a potential rebound toward €20.00 if broader European steel sentiment improves.

Key Takeaways:

• Salzgitter AG lowered 2025 guidance, now forecasting sales of €9.0–9.5 billion and EBITDA of €300–400 million.

• H1 2025 shows external sales of €4.7 billion and a pre-tax loss of €–83.8 million, largely driven by soft market demand.

• The Group leans on its Aurubis AG equity income and the profit improvement program P28 to counter ongoing industry headwinds.