Outokumpu targets 250 million-euro earnings improvement in 2026-2030

Outokumpu Oyj

11/06/2025 07:06

June 11 (Reuters) - Finnish stainless steel maker Outokumpu OUT1V.HE is targeting long-term earnings improvement of 250 million euros ($285 million) for 2026-2030, it said ahead of its investor day on Wednesday.

The company, whose stainless steel products are used in tanks, facades and consumer goods such as washing machines, also said it plans to invest about 200 million euros in a new annealing and pickling line in Tornio, Finland, and intends to close two less competitive lines in Krefeld, Germany.

Once the new line is operational, this set-up would generate annual earnings before interest, taxes, depreciation and amortisation (EBITDA) improvements of 70 million euros through the period, Outokumpu said in a statement.

The company plans to drive growth by allocating investments into either a foundational or transformational category.

It said the role of the foundational businesses is to provide cash for growth in other areas, with capex limited to maintenance and targeted investments.

The transformative part of the strategy aims to target

high-value growth opportunities with a minimum internal rate of return of 20%, with expansion into less cyclical markets, the company said.

That includes expansion into the global advanced materials and alloys market and assessing growth opportunities beyond standard stainless steel in the U.S.

Outokumpu is also targeting a net debt to EBITDA ratio, an important gauge of a company's financial health, of 1.0x during the same period, it said.

It said it aims to pay a "stable and growing" dividend over time.

($1 = 0.8760 euros)

 (Reporting by Elviira Luoma and Jagoda Darlak, editing by Matt Scuffham)

 ((jagoda.darlak@thomsonreuters.com, elviira.luoma@thomsonreuters.com))