Klöckner & Co. reported a surprising profit rebound in Q2 despite a 7% revenue decline to €1.6 billion. The steel trader’s operating profit before special items surged over 50% to €65 million, while net income swung from a €23 million loss last year to a €2 million profit. Lower procurement costs and optimized inventory management drove the turnaround, offsetting weaker European demand. Notably, North American sales hit record levels, contrasting with stagnant European performance. For Q3, the company forecasts operating profit between €40–80 million, reflecting ongoing market uncertainty.
Strategic Shifts Fuel Growth
Klöckner’s 2025 EBITDA outlook projects growth to €170–240 million, though sales expectations were tempered. The firm is expanding its North American electrical steel capacity to capitalize on renewable energy infrastructure demand, with a new facility set to launch in Q3. Recent acquisitions, including a Swiss building installations provider, diversified its portfolio into wear-resistant steels and defense sectors. Operating cash flow rose to €75 million, supporting stable free cash flow of €44 million despite €31 million in investments. Investors reacted mixedly, with shares fluctuating between losses and 5% gains.
