Aperam ( (APEMY) ) has released its Q1 earnings. Here is a breakdown of the information Aperam presented to its investors.
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Aperam S.A. is a global leader in stainless, electrical, and specialty steel production, as well as recycling, with operations spanning across multiple continents and a strong focus on sustainability. The company operates in four main segments: Stainless & Electrical Steel, Services & Solutions, Alloys & Specialties, and Recycling & Renewables.
In the first quarter of 2025, Aperam reported a challenging financial performance amidst a volatile economic environment. The company achieved sales of EUR 1,658 million, marking a 12.7% increase from the previous quarter, driven by a 14% rise in shipments. However, the adjusted EBITDA decreased to EUR 86 million from EUR 116 million in the previous quarter, and the company recorded a net loss of EUR 18 million.
Key financial metrics highlighted include a significant increase in net financial debt to EUR 1,235 million, primarily due to the acquisition of Universal. The acquisition also impacted free cash flow, which was negative at EUR 574 million. Despite these challenges, the Services & Solutions segment showed improvement with increased sales and EBITDA, while the Alloys & Specialties segment faced an exceptional loss due to inventory adjustments.
Looking ahead, Aperam’s management remains optimistic about the company’s resilience and ability to adapt to market conditions. The company expects an improvement in adjusted EBITDA in the second quarter of 2025 and aims to reduce net financial debt, focusing on generating cash for dividends and reducing leverage.