Global stainless steel major Outokumpu has reported a significantly stronger performance for the first quarter of 2026, supported by improving market conditions, higher stainless steel delivery volumes, and stronger pricing trends across key markets.

The company posted an adjusted EBITDA of EUR 65 million in Q1 2026, a major improvement compared to EUR 10 million in the previous quarter. The growth was driven by increased profitability in Europe due to higher delivery volumes and stronger performance in the Americas, supported by higher average stainless steel prices.

Outokumpu’s stainless steel deliveries increased by 27% quarter-on-quarter to 465 thousand tonnes, reflecting improved market activity driven by seasonal demand and the growing impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM). Since the implementation of CBAM earlier this year, the European stainless steel market has witnessed a shift toward lower-emission, scrap-based production within Europe.

The company highlighted that imports of cold-rolled stainless steel into the EU have nearly halved since CBAM came into effect, strengthening demand for European stainless steel manufacturers.

Sales during the quarter stood at EUR 1.451 billion, while operating cash flow strengthened significantly to EUR 85 million, supported by improved profitability and working capital release. Net debt also reduced to EUR 241 million from EUR 265 million recorded in the previous quarter.

Outokumpu’s ferrochrome business continued to deliver stable performance during the quarter. Ferrochrome deliveries rose by 17% to 110 thousand tonnes compared to Q4 2025, supported by balanced market conditions and rising prices. The company stated that demand for its low-emission European ferrochrome products remains strong.

Commenting on the results, President and CEO Kati ter Horst emphasized the positive impact of CBAM on the European stainless steel sector.

“Since the introduction of CBAM in January, there is a clear carbon price on stainless steel imports at the EU border, which shifts demand towards European scrap-based production with a lower carbon footprint,” she said.

She also stressed the importance of extending CBAM coverage to downstream steel-intensive goods to maintain fair competition and avoid carbon leakage within the supply chain.

Outokumpu continues to advance its EVOLVE growth strategy focused on higher-margin specialty products, low-carbon solutions, and circular economy initiatives. During the quarter, the company progressed with the construction of its pilot plant in New Hampshire, USA, aimed at scaling up proprietary low-CO₂ enriched ferrochrome and chromium metal production technology. The facility is expected to become operational in the first half of 2027.

The company also launched a circular economy ecosystem at its Kemi mine in Finland to improve resource efficiency and better utilize mining side streams.

Meanwhile, Outokumpu’s group-wide restructuring program remains on track, targeting annual cost savings of EUR 100 million by the end of 2027, with nearly half of the expected savings projected to be achieved during 2026.

Despite geopolitical uncertainties and increasing freight costs linked to tensions in the Middle East, the company stated that the direct impact on its operations has remained limited so far. Outokumpu added that its strong energy hedging strategy and access to Nordic low-carbon electricity continue to help mitigate energy-related risks.

Looking ahead, Outokumpu expects its adjusted EBITDA in the second quarter of 2026 to improve further compared to Q1. Stainless steel delivery volumes are forecast to increase by 0–10%, while raw material-related inventory gains are also expected to support profitability.

With improving stainless steel market dynamics, stronger sustainability positioning, and continued investments in low-carbon technologies, Outokumpu appears well-positioned for further growth in the evolving global stainless steel market.