Steelmaker Acerinox tops earnings expectations, expects them to rise in Q2 (updated)
08/05/2026 07:30
Adds share move in paragraph 4, alloys unit performance in paragraphs 5-6, CEO quotes in paragraphs 7-8 By Javi West Larrañaga May 8 (Reuters) - Spain's Acerinox ACX.MC reported first-quarter earnings above market expectations on Friday, helped by increased orders for stainless steel in Europe and the U.S., but its shares slid after the alloys unit disappointed. The steelmaker reported an adjusted core profit of 119 million euros ($140 million) for the quarter. Analysts polled by LSEG had expected it to rise to 113.4 million euros on average. Acerinox estimated that the direct hit from the Middle East war on its core profit was only about 2 million euros. However, rising energy and material costs weighed on margin recovery in Europe, it said. The company's shares fell up to 4% in early trading and were down 1.8% by 0922 GMT, following a weaker-than-expected result in the high-performance alloys business. The unit's core earnings shrank 65% year-on-year and were 71% below J.P. Morgan's estimate, the brokerage said in a note. Acerinox blamed the slump on poor performance in the oil and gas sector and weak demand from the chemical processing industry due to high energy costs and general uncertainty. "The alloys business is also cyclical, but its cycle is somewhat different from that of stainless steel, which is very positive for us as it helps us to smooth out our cycles," CEO Bernardo Velazquez told Reuters. "We manage risk very well, but ... when you're widely diversified, it's hard for everything to go well at the same time," he added. Acerinox, whose U.S. mills make the bulk of its earnings, has benefited from President Donald Trump's protectionist measures, including 50% tariffs on steel imports that shield it from outside competition. Coupled with the European Union's carbon levy on high-emission imports and an upcoming trade policy to halve steel import quotas, to be enforced from July 1, Acerinox is set to profit from increased protections in both its main markets. It expects improved order books and falling imports into Europe to lead to higher core earnings in the second quarter. ($1 = 0.8519 euros) (Reporting by Javi West Larrañaga in Gdansk, editing by Milla Nissi-Prussak) ((Javier.West@thomsonreuters.com; +34 918 35 61 12;))