Aperam: EBITDA Up Year on Year in the Third Quarter, but Down from the Second Quarter and Sales Below Expectations
Aperam published its third-quarter 2026 results on 6 November 2026, and their interpretation depends on the basis of comparison.
Year on year, adjusted EBITDA rose to €105 million from €74 million, and its margin gained 1.8 points to 7.0%. Compared with the second quarter, however, it fell from €130 million to €105 million, and its margin lost 0.7 points.
This sequential decline accompanies a 10.9% drop in shipments, to 540,000 tonnes, which the group attributes to the seasonal slowdown. Net profit came in at €7 million, compared with €116 million in the previous quarter and a loss of €21 million a year earlier.
Revenue of €1,510 million and earnings per share of €0.09 came in below the expectations raised before publication, which stood at €1.58 billion and €0.39. On the eve of the results, the share price had fallen 24% over the quarter.
Year on Year, Growth Attributed to Structural Gains and Commercial Defence
Chief Executive Officer Sud Sivaji cited "the best third-quarter performance in four years", achieved "in a context of seasonality and weak demand in Europe".
Reported EBITDA stood at €103 million, up 39% year on year, a gain the group links to the structural gains of the Leadership Journey programme and the support of trade defence measures.
The sixth phase of this programme generated €18 million in gains during the quarter and €56 million over nine months, against a target of €150 million for the 2026-2028 period. Per tonne delivered, adjusted EBITDA reached €194, compared with €131 a year earlier and €215 in the second quarter.
Over the first nine months, revenue was nearly flat, at €4,774 million compared with €4,722 million. Adjusted EBITDA rose to €325 million from €272 million, and its margin gained one point, to 6.8%.
Stainless Steel and Recycling Drive Most of the Annual Increase
The Stainless & Electrical Steel division, the largest with €941 million in sales, generated adjusted EBITDA of €52 million, up 44% year on year. It fell from €59 million in the second quarter, the group citing the summer slowdown in Europe and the absence of a genuine demand recovery, partly offset by performance in Brazil.
The Recycling & Renewables division more than doubled its adjusted EBITDA year on year, to €21 million from €10 million, thanks to higher volumes and structural gains. However, it declined from €32 million to €21 million over the quarter and posted an operating loss of €1 million.
At Services & Solutions, EBITDA rose to €8 million, compared with a loss of €1 million a year earlier and a gain of €21 million in the second quarter.
Alloys & Specialties maintained its adjusted EBITDA at €25 million year on year, down from €29 million in the previous quarter due to scheduled summer maintenance, while its average selling price rose 6.7%.
Net Profit Reduced by Tax and Financial Expenses, Net Debt Down
The gap between EBITDA and net profit is explained by depreciation and amortisation of €61 million, which brings operating income down to €42 million. Its margin stands at 2.8%, down 3.2 points over the quarter but up 2.2 points year on year.
Financial expenses of €21 million and a tax charge of €14 million, representing an effective tax rate of 66.7%, then absorb most of the result.
The second quarter had, conversely, benefited from net exceptional items of €29 million, linked in particular to tax credits in Brazil, and a tax income of €23 million. Free cash flow before dividends reached €68 million, compared with €106 million in the previous quarter and €138 million a year earlier.
Net financial debt fell to €980 million, from €993 million at the end of June and €1,045 million a year earlier. The group expects adjusted EBITDA to be slightly higher in the fourth quarter, assuming constant metal and product prices, as well as a further reduction in net debt by the end of the year.
Its Chief Executive says he is "on track to achieve [the] deleveraging target by end-2027". The year-on-year improvement thus rests on structural gains and commercial defence, while the passage from EBITDA to net profit remains absorbed by depreciation, financial expenses and tax.
