SALZGITTER (dpa-AFX) - Steel manufacturer Salzgitter has raised its earnings forecasts for 2026 following a robust first quarter. The company announced unexpectedly on Tuesday evening that the performance was primarily driven by the contribution from its stake in copper producer Aurubis. In addition to the expected operating earnings share, this was positively influenced largely by significant valuation effects from metal prices. Furthermore, the steel production, trading, and technology divisions also showed earnings improvements, the company added. The stock recently gained more than four percent.
According to preliminary calculations, external sales remained stable at 2.3 billion euros in the first quarter. However, earnings before interest, taxes, depreciation, and valuation exchangeable (EBITDA VX) surged to 280 million euros, up from 79 million euros the previous year. The corresponding pre-tax profit (VX) climbed to 179 million euros, following a loss of 27 million euros a year earlier. Detailed results are scheduled for release on May 12.
For the full year, the group now expects EBITDA VX to range between 625 and 725 million euros, an increase of 125 million euros at both ends of the previous guidance. Pre-tax profit (VX) is now projected at 200 to 300 million euros, also 125 million euros higher than previously estimated. Revenue is still expected to reach approximately 9.5 billion euros.
The company noted that predictability regarding both further economic development and the valuation of listed assets remains limited due to various geopolitical uncertainties. Planned public investment and infrastructure programs have not yet led to a significant economic recovery. Positive momentum from EU trade defense measures is expected later in the year. Overall, the economic environment is anticipated to improve only moderately./jha/he
