Salzgitter Group delivers pretax result close to breakeven

• Technology Business Unit achieves record result; another gratifying contribution from the participating investment in Aurubis
• Steel-related activities burdened by unfavorable economic framework conditions
• P28 profit improvement program: implemented measures yield € 129 million worth of additional cost savings
• Earnings guidance for the financial year 2026:
• EBITDA VX between € 500 million and € 600 million,
• EBT VX of between € 75 million and € 175 million
• Dividend proposal for the Annual General Meeting of Shareholders of € 0.20 per share

The Salzgitter Group’s performance in 2025 was determined by persistently weak demand in key customer sectors, high energy prices, compounded by fierce international competition. Rolled steel product prices dropped below the level posted in 2024. Along with global disruptions in trade flows caused by US trade policy, this scenario placed considerable pressure on the steel-producing and steel processing companies. A countertrend emanated from the record performance of the Technology Business Unit, as well as another very gratifying earnings contribution from the participating investment in Aurubis AG, flanked by cost cutting effects from the P28 profit improvement program.

Due to the decline in the average prices of steel products and the deconsolidation of the stainless tubes group in the Steel Processing Business Unit, the Salzgitter Group’s external sales declined to € 9.0 billion (2024: € 10.0 billion). EBITDA decreased accordingly to € 376 million (2024: € 445 million). Compared with the year-earlier figure that was impacted by non-recurrent items, earnings before taxes came in at € - 28 million (2024: € -296 million). The result includes an after-tax contribution of € 180 million from Aurubis AG (IFRS accounting), an investment included at equity (2024: € 184 million) that was positively impacted by higher valuation effects from fluctuations in metal prices, particularly in the fourth quarter. This development was offset by valuation effects amounting to € - 30 million (2024: € 0) from a bond exchangeable into the shares of Aurubis AG. The after-tax result stood at € -70 million (2024: € -348 million), which brings basic earnings per share to € -1.37 (2024: € -6.51). The return on capital employed (ROCE) amounted to 0.7 % (2024: -3.4 %). Net financial debt increased to € -954 million on the back of the high level of investment under the SALCOS® decarbonization program (2024: € -574 million). The Executive Board and the Supervisory Board will put forward a proposal to the Annual General Meeting of Shareholders to be held on June 3, 2026, to pay dividend of € 0.20 per share.

External sales by business unit (EUR million):

EBITDA by business unit (EUR million):

Earnings before taxes (EBT) by business unit (EUR million):

Outlook

Germany’s economic situation remains tense, also at the outset of 2026. The government’s planned investment and infrastructure programs have not yet resulted in a marked economic recovery. Instead, we anticipate positive stimulus for our industry from the EU’s trade defense measures. All in all, we expect an only moderate improvement in the economic environment and anticipate the following for the Salzgitter Group in the financial year 2026:

• sales in the region of € 9.5 billion,
• EBITDA VX of between € 500 million and € 600 million,
• EBT VX of between € 75 million and € 175 million, as well as
• a return on capital employed (ROCE VX) marginally above the previous year's figure.

This guidance has not factored in the effects of the possible implementation concerning the key components published on February 6, 2026, on the continuation of Hüttenwerke Krupp Mannesmann GmbH under the sole responsibility of Salzgitter AG.

As the valuation of the exchangeable bond placed in October 2025 may result in non-operational and on occasion significant fluctuations in earnings, guidance for the Group as from the financial year 2026 will be based on adjusted key performance indicators. In calculating EBT VX (Earnings before Taxes and Valuation Exchangeable) and EBITDA VX (Earnings before Interest, Taxes, Depreciation, Amortization and Valuation Exchangeable), as well as ROCE VX (Return on Capital Employed), the earnings effects in connection with the valuation of the exchangeable bond will be eliminated.

Chief Executive Officer Gunnar Groebler comments as follows: “Given the sustained economic weakness, energy prices at a high level, and growing uncertainty from trade policies, we are focusing on our own ability to take action. This includes rigorous cost cutting, restructuring and active portfolio measures. In the financial year 2025, we achieved significant cost-cutting effects compared with the previous year, and initial success from restructuring measures was marked by the turnaround completed by the Trading Business Unit. At the same time, we are systematically optimizing our portfolio in line with the best-owner principle, through the sale of DESMA Schuhmaschinen GmbH, for instance, and the recent acquisition of Thyrolf & Uhle GmbH that is designed to strengthen our value chain structure in the security steels segment. In making these decisions, we combine setting clear financial targets with social responsibility, which also applies to our approach to the future of Hüttenwerke Krupp Mannesmann (HKM): We are prepared to open up economic prospects for HKM under the sole responsibility of Salzgitter AG. In this instance as well, reliable political framework conditions are necessary, for example, in terms of European carbon emission regulation. We anticipate support for investment reliability and competitiveness from the EU’s trade defense instruments and the carbon border adjustment mechanism.”

As Chief Financial Officer Birgit Potrafki elaborates further: “A 2025 pre-tax result virtually at breakeven highlights the effectiveness of the measures we have implemented, also under the prevailing challenging market conditions. Operating cash flow has increased to more than € 500 million over the past financial year. Our P28 profit improvement program made a significant contribution: the original plans for a cost-cutting effect of € 97 million was significantly outperformed by achieving a sustainable amount of € 110 million. Including non-recurrent items, the amount totaled as much as € 129 million. We will continue to consistently sustain this positive momentum in the current financial year. Placing a bond convertible into the shares of Aurubis AG has given us greater financial flexibility. In future, we will be eliminating the earnings fluctuations resulting from the valuation of the bond in our key performance indicators, which will enhance our transparency and underpin the comparability of our operating performance. Against the background of ongoing volatility in the market environment, improving profitability, investment discipline and working capital management will be accorded key financial priority.”

The complete report released on the results of the financial year 2025 can be viewed at: https://www.salzgitter-ag.com/en/investor-relations/news-publikationen.html.