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Afarak issues profit warning as weak stainless steel demand hits margins

Story Highlights
  • Afarak expects 2025 EBITDA to drop sharply despite higher revenue, as weak stainless steel demand and lower chrome ore prices erode margins.
  • Commissioning delays at Afarak’s Vlaakport wash and solar plants push full capacity to early 2026, weighing on short-term profitability but supporting longer-term efficiency gains.
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Afarak issues profit warning as weak stainless steel demand hits margins

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The latest update is out from Afarak Group Plc ( (GB:AFRK) ).

Afarak Group SE, a specialist alloy producer operating in southern Europe and South Africa, focuses on speciality alloys and ferroalloys with an emphasis on chrome-based products. The company targets sustainable growth in these niche markets and maintains dual listings in Helsinki and London, giving it access to both Nordic and international capital markets.

The company issued a profit warning, revealing that despite increasing 2025 revenue to €141.3 million, EBITDA is expected to fall to about €0.7 million from €2.6 million in 2024. Weak stainless steel demand, persistent pricing pressure, a softer US dollar, cheaper imports and lower chrome ore prices squeezed margins, while commissioning delays at its Vlaakport wash and solar plants pushed full capacity to early 2026, potentially tempering short-term profitability even as longer-term operational improvements remain in focus.

More about Afarak Group Plc

Afarak Group SE is a specialist alloy producer with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The company focuses on sustainable growth in chrome-related products and is listed on Nasdaq Helsinki and the main market of the London Stock Exchange.

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

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