Finland's Outokumpu lags Q2 forecast as costs hurt European profits (updated)

Outokumpu Oyj

30/07/2026 07:15

Adds shares in paragraph 1, detail on European performance and Middle East impact in paragraphs 3-5, context and comment on EU measures in paragraphs 6-7 and 10, outlook in paragraphs 8-9.
By Jagoda Darlak
July 30 (Reuters) - Outokumpu OUT1V.HE reported a second-quarter core profit below market expectations on Thursday, sending its shares 10% lower, as European stainless steel demand remained broadly unchanged and higher costs offset improvements in volumes and pricing.
The Finnish company's adjusted earnings before interest, taxes, depreciation and amortisation rose 33% to €100 million ($114.5 million) in the April-June quarter, but were clearly below the forecast of €114 million in a company-provided consensus.
Outokumpu said profitability in Europe, its largest business area, remained broadly stable as the positive effects of higher volumes and selling prices were largely offset by an unfavourable product mix and higher variable costs.
It added the direct impact of the conflict in the Middle East was limited and related to higher freight costs, but that it added to market uncertainty.
Core result in Europe improved to a profit of €17 million from a loss-making first quarter, but was only marginally above the €16 million the company had reported last year.
Long pressured by weak domestic demand, elevated energy costs and low-priced Asian imports, European steel producers are set to benefit from tighter steel import quotas and a carbon border levy on emissions-intensive imports in the European Union.
"Market dynamics were supported by the Carbon Border Adjustment Mechanism (CBAM) and the steel safeguard measures that came into force on July 1, 2026," Outokumpu CEO Kati ter Horst said in a statement.
Outokumpu's stainless steel deliveries rose by 5% quarter-on-quarter, but are expected to be flat or decline by up to 10% in the seasonally weaker third quarter, the company said.
Despite that, third-quarter adjusted EBITDA should remain at a similar level to the second quarter.
Earlier this month, rival SSAB SSABa.ST also reported a second-quarter earnings miss, weighed down by an Iran war-driven rise in costs of logistics and energy.
($1 = 0.8737 euros)

(Reporting by Jagoda Darlak in Gdansk, editing by Milla Nissi-Prussak)
((Jagoda.Darlak@thomsonreuters.com; +48 58 769 65 40;))