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An update from Afarak Group Plc ( (GB:AFRK) ) is now available.
Afarak Group SE, a specialist alloys producer focused on ferrochrome and other niche metal alloys, operates processing assets in Southern Europe and mining and ferrous operations in South Africa. The group targets stable growth and benefits from dual listings in Helsinki and London, positioning it within European and global stainless-steel and alloy supply chains.
In 2025 Afarak increased revenue to €141.3 million and boosted sales of refined specialty alloy products by more than 30%, but remained loss-making with operating profit at –€2.6 million and net loss at –€8.9 million. Profitability was squeezed by sharply lower mined volumes, the sale of its Zeerust mine in South Africa, cheap alloy and steel imports into the EU, and high European energy and carbon costs, leaving margins under pressure despite improved cash flow and reduced net debt.
The second half of 2025 saw revenue rise to €64.2 million and operating cash flow turn positive, yet EBITDA and operating profit deteriorated as margins weakened. While low-carbon ferrochrome prices showed signs of recovery late in the year, the impact was largely offset by a weaker U.S. dollar, and management highlighted that ongoing global overcapacity in steel and high input costs in Europe continue to cloud the short-term outlook.
Afarak’s customer base, heavily exposed to the struggling EU steel and stainless-steel sectors, is facing intense competition from low-cost imports, keeping demand and pricing subdued. New EU trade-defence tools, including CBAM and safeguard measures, are beginning to show some positive effect in early 2026, but the company expects continued margin pressure as energy and emissions costs weigh on European producers and uncertainty persists in global steel markets.
More about Afarak Group Plc
Afarak Group SE is a specialist alloys producer focused on ferrochrome and other niche metal alloys, aiming for stable growth. The company operates specialty alloys businesses in Southern Europe and ferrous operations in South Africa, and its shares are listed on Nasdaq Helsinki and the London Stock Exchange, giving it access to both Nordic and UK capital markets.
Learn more about AFRK stock on TipRanks’ Stock Analysis page.