Afarak issues profit warning as 2025 EBITDA drops despite higher revenue

Afarak Group Plc ( (GB:AFRK) ) has issued an update.

Afarak Group SE, a speciality alloys producer with operations in Southern Europe and ferroalloys in South Africa, is focused on chromium-based products that serve stainless steel and related industries. The company is listed in Helsinki and London, anchoring its presence in both European equity markets.

The board warns that 2025 EBITDA will fall sharply to about EUR 0.7 million despite higher revenue of EUR 141.3 million, down from EUR 2.6 million in 2024. Weaker-than-expected recovery in stainless steel demand, lower chrome ore prices, pressure from cheap imports and a weaker U.S. dollar have squeezed margins, while commissioning delays at the Vlaakpoort concentrator and solar plant push full capacity to the first quarter of 2026.

Afarak notes that earlier optimism about improving markets for low-carbon ferrochrome and chrome ore has not materialised, forcing it to manage through sustained pricing pressure. The setbacks may weigh on near-term profitability and could temper investor expectations, though the ramp-up of new South African capacity and energy self-sufficiency is intended to support margins once operational issues are resolved.

More about Afarak Group Plc

Afarak Group SE is a producer of speciality alloys pursuing stable growth. The company operates speciality alloy businesses in Southern Europe and ferroalloy operations in South Africa, focusing on chromium-related products linked to stainless steel markets. Its shares are listed on Nasdaq Helsinki and the London Stock Exchange, giving it access to both Nordic and UK capital markets.

For an in-depth examination of AFRK stock, go to TipRanks’ Overview page.