Feb 6 (Reuters) - European stainless steel producer Aperam reported fourth-quarter core earnings slightly below market expectations on Friday, and said they would rise quarter-on-quarter in the first
Aperam Anticipates Steel Market Recovery by 2026 Amid EU Measures
Aperam's Financial Performance and Future Outlook
By Javi West Larrañaga
Fourth Quarter Earnings Analysis
Feb 6 (Reuters) - European stainless steel producer Aperam reported fourth-quarter core earnings slightly below market expectations on Friday, but said they would rise quarter-on-quarter in the first three months of 2026, sending its shares 7% higher.
Impact of EU Trade Measures
Aperam CEO Sud Sivaji said in a statement the company was gearing up for a positive momentum on the back of European trade protection measures that should start to yield results in the second half of 2026.
Market Predictions from Analysts
"Guidance reinforces our JPM forecasts that Q4 represents trough earnings across the EU Steel sector in 2025-2027," J.P. Morgan analysts said in their take on the report.
The shares were trading at their highest levels in almost four years.
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.
Aperam's adjusted earnings before interest, taxes, depreciation and amortisation were 67 million euros ($79 million) in the fourth 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, which Aperam put down to price pressures, seasonality and annual maintenance in Brazil, along with low demand in Europe and a weak oil and gas industry.
Its stainless and electrical steel business took the brunt of it, with a 74% year-on-year core profit contraction in the fourth quarter.
The 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 in the average selling price, compared to end-2024.
(Reporting by Javi West Larrañaga in Gdansk, editing by Milla Nissi-Prussak)
