Aperam slides on lower Q1 earnings, outlook uncertainty

Aperam SA

30/04/2025 08:53

** Shares in Luxembourg-based steel group Aperam APAM.AS slump 8.4% after it posted a sequential drop in Q1 adjusted core earnings and warned of guidance uncertainty due to global trade disruptions

** Its Q1 adjusted EBITDA comes in at 86 million euros ($98 million), down more than 25% q/q, due to pricing pressure in Europe and seasonal effects in Brazil

** Aperam's main Stainless & Electrical Steel division recorded "a soft result due to the weak European backdrop", with adjusted EBITDA of 28 million euros (vs Visible Alpha consensus of 31 million euros), Oddo BHF analysts say

** While Aperam guided for higher EBITDA in Q2 vs Q1, the H1 run rate implies a miss on FY EBITDA, expected around 460-475 million euros vs 499 million euros consensus, JP Morgan analysts say

** "Given its relatively larger European footprint (and smaller US exposure vs peers), we expect the material weakness in European base prices ... to likely remain a headwind on margins," it adds

($1 = 0.8783 euros)

 (Reporting by Alban Kacher)

 ((Alban.kacher@thomsonreutes.com))