Finance
Outokumpu earnings slump, sees further decline in Q4 amid muted steel demand
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Outokumpu's Q3 earnings fell 60%, with further decline expected in Q4 due to weak steel demand and Asian import pressure.
By Jagoda Darlak
(Reuters) -Finland's Outokumpu reported a 60% slump in quarterly core earnings on Wednesday and warned of a further decline in the final quarter of 2025, weighed down by subdued steel demand in Europe and pressure from Asian imports.
Shares of the stainless steel maker fell nearly 9% by 1000 GMT.
European steelmakers have been facing challenges that include weak domestic demand, high energy costs and severe pressure from low-priced imports from Asia, especially China.
Outokumpu's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to 34 million euros ($40 million) in the June-September period, missing analysts' average forecast of 35.7 million euros.
The company expects the earnings to be even lower in the fourth quarter, it said in a statement.
Global trade tensions triggered by U.S. President Donald Trump's import tariffs also weigh on the mood among consumers, slowing down economic and industrial activity. Outokumpu is the second largest stainless steel producer in the United States.
"The underlying demand for stainless steel continues to be subdued due to low investment and manufacturing activity as well as weak consumer confidence," CEO Kati ter Horst said in a statement.
European market remained sluggish and stainless steel prices were under pressure for the whole quarter, she added.
Outokumpu's stainless steel deliveries fell 11% in the third quarter and are expected to decline by another 5-15% in the fourth quarter due to market weakness in Europe and a seasonal slowdown in the Americas.
In a separate press release, Outokumpu said it would invest $45 million in a new U.S. pilot plant in New Hampshire to make critical carbon-free materials such as chromium metal and enriched ferrochrome.
If the pilot phase succeeds, Outokumpu plans to build its first industrial-scale plant with a production capacity of about 10,000 tons per year, it said.
($1 = 0.8575 euros)
(Reporting by Jagoda Darlak in Gdansk; editing by Milla Nissi-Prussak)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance.
Stainless steel deliveries refer to the quantity of stainless steel products shipped to customers. It is a key performance indicator for steel manufacturers.
Market demand is the total quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.
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