Finance
Steelmaker Aperam lags profit forecast as low demand persists in Europe
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Aperam's Q4 core profit was slightly below market expectations at 67 million euros, with analysts forecasting 68.4 million. Earnings are expected to rise in Q1 2026.
Aperam's Fourth-Quarter Earnings Fall Short Amid Weak European Demand
Aperam's Earnings Performance and Market Outlook
By Javi West Larrañaga
Factors Affecting Profit Decline
Feb 6 (Reuters) - European stainless steel producer Aperam reported fourth-quarter core earnings slightly below market expectations on Friday, hampered by low steel prices and continued weak demand in Europe.
Impact of EU Trade Measures
Adjusted earnings before interest, taxes, depreciation and amortisation were 67 million euros ($79 million) in the quarter, while analysts polled by LSEG had forecast 68.4 million euros on average.
That was more than 40% lower than in the same period in 2024.
Price pressure, seasonality and annual maintenance in Brazil were major drivers for the profit decline, along with low demand in Europe and a weak oil and gas industry, the company said.
Its stainless and electrical steel business took the brunt of it, with a 74% year-on-year core profit contraction in the fourth quarter.
Still, Aperam CEO Sud Sivaji said the core earnings were solid, as the company "gears up to positive momentum" on the back of European trade defence measures that should start to yield results in the second half of 2026.
The group also said its core earnings would rise in the first three months of 2026, compared to the final quarter of last year.
EU MEASURES SET TO BOOST PRICES
Aperam's results were weighed down by a contraction of stainless and electrical steel prices in 2025. For the fourth quarter, company data showed a 16% drop on the year in the average selling price.
But this year, European steelmakers are set to benefit from increased protection in the European Union thanks to the recently enacted Carbon Border Adjustment Mechanism (CBAM) and the European Commission's proposal to cut import quotas.
Analysts have said this should bring a greater price acceleration in 2026.
The CBAM, in place since January 1, is the EU's tool to levy carbon-intensive goods entering the bloc to even the playing field for domestic producers, who have to adhere to stricter environmental criteria.
(Reporting by Javi West Larrañaga in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Aperam's Q4 core earnings were slightly below market forecasts.
- •The company reported earnings of 67 million euros.
- •Analysts expected 68.4 million euros in earnings.
- •Aperam anticipates earnings growth in Q1 2026.
- •The report was edited by Milla Nissi-Prussak.
Frequently Asked Questions about Steelmaker Aperam lags profit forecast as low demand persists in Europe
1What is core profit?
Core profit refers to the earnings generated from a company's primary business operations, excluding any income derived from non-operational activities, such as investments or sales of assets.
2What are market expectations?
Market expectations are the anticipated financial performance metrics or results that analysts and investors predict for a company based on various factors, including past performance and market conditions.
3What is adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)?
Adjusted EBITDA is a measure of a company's overall financial performance that excludes certain non-recurring items, providing a clearer picture of operational profitability.
