SSAB Q2 operating profit rises 26% as prices offset war costs

SSAB reported Q2 operating profit of SEK 2.7 billion, up 26% from a year earlier, as higher prices and shipments offset cost increases from the Persian Gulf war.

"Despite continued geopolitical uncertainty, we remain focused on executing our strategic priorities, strengthening the premium product offering, and advancing our transformation towards fossil-free steel production," Chief Executive Officer Johnny Sjöström said.

Revenue rose 7.3% to SEK 27.5 billion from SEK 25.6 billion a year earlier. Earnings per share reached SEK 2.09, up from SEK 1.86. The company's lost time injury frequency fell to an all-time low of 0.38 from 0.64. Net cash stood at SEK 8.6 billion, down from SEK 10.9 billion, after the company paid SEK 2 billion in dividends during the quarter. Consensus estimates were not disclosed.

The results show SSAB's pricing power held even as the Persian Gulf war pushed up logistics and energy costs and weakened high-strength steel demand in the Middle East. The company expects a seasonal slowdown in the third quarter but said implemented price increases will generate somewhat higher prices.

The Swedish steelmaker is pressing ahead with its transition to fossil-free production. The new electric arc furnace in Oxelösund is being installed, with production start planned for the second quarter of 2027 after a legal process related to the power line was concluded. The Luleå project remains on schedule and within budget for a late 2029 production start, with groundwork resumed after precautionary pauses.

During the quarter, SSAB announced an investment in a new quenching line in Oxelösund to increase capacity for advanced wear and protection steels such as Hardox 500Tuf and Armox.

New trade measures to protect the European steel sector from global overcapacity entered into force July 1, 2026. Sjöström said the company expects this to improve the future supply-demand balance in the European market. The company plans planned maintenance at all steel divisions during the third quarter.

The earnings beat signals that SSAB's premium steel strategy is providing a buffer against geopolitical cost pressures. Investors will watch the third-quarter report for the full impact of the EU trade measures and progress on the Oxelösund conversion, with production start now 12 months away.

This article is for informational purposes only and does not constitute investment advice.