DJ Aperam update on Q1 2025 market & financial trends
Aperam S.A. / Key word(s): Miscellaneous
Aperam update on Q1 2025 market & financial trends
03-Apr-2025 / 06:59 CET/CEST
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Aperam update on Q1 2025 market & financial trends
Luxembourg, April 3, 2025 (07:00 CEST) - In preparation of the upcoming quarterly results release scheduled for
Wednesday, 30 April 2025, we would like to remind market participants of the standing guidance, earnings drivers and
events that should be considered.
The Q1 2025 outlook, as specified in the Q4 2024 presentation, the management podcast and during the conference call
was:
-- Q1 2025 group adjusted EBITDA lower than Q4 2024 (EUR116m) despite seasonally higher shipments in Europe
and the first time consolidation of Universal. These positive effects will be more than offset by pricing pressure
in Europe, a clearly negative valuation effect and the seasonal trough in Brazil.
-- The Aperam compiled Q1 2025 adjusted EBITDA consensus stands at EUR87m (average) currently. The consensus
is updated & published at:
https://www.aperam.com/investors/news-contacts/results
-- Higher net financial debt versus the EUR544m reported at year end 2024 due to the acquisition of
Universal Stainless & Alloy Products for USD537m (EUR518m) and seasonally higher net working capital. Capex was
guided at EUR200m for 2025 with a higher share being spent in Q1. As a consequence of higher NWC and a high capex
spend we project a negative free cash flow for first quarter 2025.
Additional items
Europe: Normal seasonality with higher Q1 volumes compared to Q4, which was partly due to
Volume seasonality restocking. Demand remains at a depressed level overall. In Brazil Q1 forms the seasonal trough
with lower shipments qoq.
In Europe pricing pressure remained high in Q1 and realized pricing declined versus Q4. Recent
Current trading & political initiatives improved the sentiment, but actual trading remains unchanged so far.
outlook In Brazil demand remains solid as we harvest positive effects from the hot rolling mill upgrade. Q2
is a seasonally stronger quarter.
Commodity prices & For the group we guided for a meaningful negative valuation effect of EUR15 - 20m versus Q4.
valuation effect
Universal Stainless Full consolidation started with closing on 23 January 2025 - reported within the Alloys &
Specialties segment. Q1 performance reflects the clogged aerospace supply chain in the USA.
Leadership Journey On track to realise the target gains of EUR75m in 2025.
Phase 5
Please note that forward guidance for adjusted EBITDA, cash flow and net debt is always provided on a stable commodity price assumption.
Commodity prices & FX
DEC 24 JAN 25 FEB 25 MAR 25
Nickel LME USD/t 15,434 15,883 15,284 16,025
Ferrochrome USD/t 2,466 2,491 2,524 2,568
EU Stainless Scrap USD/t 1,314 1,318 1,294 1,356
EU Stainless CR 2mm 304 USD/t 2,675 2,652 2,676 2,747
USD/EUR x 1.05 1.07 1.04 1.08
USD/BRL 5.78
Source: Bloomberg, CRU x 6,10 5.77 5.77
The Q1 2025 Financial performance will be published post market close on Wednesday, 30 April 2025.
Aperam management will host a conference call for members of the investment community to discuss the
Q1 2025 financial performance on 30 April 2025 at 18:30 CEST
The Capital Markets Day initially planned for June has to be postponed for scheduling reasons. We will inform you as
soon as a new date has been set.
Forward Looking Statements
This document may contain forward-looking information and statements about Aperam SA and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe", "expect", "anticipate", "target" or similar expressions. Although Aperam's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Aperam's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of Aperam, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in Aperam's filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier). The information is valid only at the time of release and Aperam does not assume any obligation to update or revise its forward-looking statements on the basis of new information, future events, subject to applicable regulation.
Contact
Investor Relations / Thorsten Zimmermann: IR@aperam.com Communication / Ana Escobedo Conover: Ana.Escobedo@aperam.com
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2110916 03-Apr-2025 CET/CEST
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April 03, 2025 01:00 ET (05:00 GMT)
