Salzgitter cuts forecasts, but says EU steel measures bring hope for 2026

By Bernadette Hogg and Emanuele Berro

(Reuters) -Salzgitter is cautiously optimistic about 2026, finance chief Birgit Potrafki said on Monday, as the European Union plans measures to ensure the competitiveness of homegrown steelmakers.

"Although we are not counting our chickens, it does look like proposed EU measures will support the long-term viability of European steel production," Potrafki told analysts after the German group reported better-than-expected third-quarter results.

The European Commission last month proposed cutting tariff-free steel import quotas by almost a half and raising duties on shipments exceeding them to 50%.

European steelmakers had warned of a possible flood of steel into the continent as exporters began to divert shipments due to U.S. import tariffs, with Salzgitter among those who called on the EU to take protective measures.

Potrafki said the company's positive pre-tax result in the third quarter was also giving it hope for 2026. It reported a profit of 11.1 million euros ($12.9 million) before taxes for the quarter, its first time in the black since the first quarter of last year.

Analysts were expecting a pre-tax loss of 6 million euros, a company-provided poll showed.

Shares of the company gained nearly 6% by 1050 GMT.

Salzgitter also lowered its 2025 forecasts on Monday, saying market conditions had shown little improvement since the beginning of the year, with recent signs of moderate price increases not expected to be reflected in the results until next year.

It expects annual sales of just above 9 billion euros, down from a range of 9.0 billion to 9.5 billion euros previously. It also shaved off 50 million euros from the top of its core profit guidance, bringing the range to 300–350 million euros.

Loss before taxes will land between 50 million and 100 million euros for the year, it said, having previously guided for a range between a 100-million-euro loss and breakeven.

($1 = 0.8575 euros)

(Reporting by Bernadette Hogg and Emanuele Berro in Gdansk, editing by Milla Nissi-Prussak)