Outokumpu increases its EBITDA run-rate improvement target by EUR 150 million to further strengthen its competitiveness

Outokumpu Corporation
Stock exchange release
May 7, 2024 at 8.55 am EEST

Outokumpu increases its EBITDA run-rate improvement target by EUR 150 million to further strengthen its competitiveness

Outokumpu has made strong progress with the execution of the second phase of its strategy and reached its EBITDA run-rate improvement target ahead of schedule. At the end of the first quarter of 2024, Outokumpu had cumulatively improved its EBITDA run-rate by EUR 233 million since the start of the second phase, which will last until the end of 2025.

To emphasize the company’s strong focus on continuous improvement, Outokumpu increases its initial EBITDA run-rate target from EUR 200 million to EUR 350 million. The additional improvement is expected to be reached through further improvements in operational performance and efficiency as well as focusing on strengthening the commercial aspects of the business.

“Continuous profitability improvements are crucial to ensure our competitiveness in the cyclical and highly competitive stainless steel industry. At the beginning of the second phase of our strategy journey, we started projects to improve our EBITDA run-rate with great ambition but realized the full potential only along the way. Therefore, we decided to increase our target by EUR 150 million and push ourselves even further,” says Heikki Malinen, President & CEO, Outokumpu Corporation. 

Outokumpu’s other financial targets for the second phase of the strategy remain unchanged and include keeping net debt to EBITDA ratio below 1.0 in normal market conditions, EUR 600 million of capital expenditure in 2023-2025 as well as stable and growing dividend.

For more information: 

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669 

Media: Päivi Allenius, SVP – Communications, tel. +358 40 753 7374 or Outokumpu media desk, tel. +358 40 351 9840

Outokumpu is accelerating the green transition as the global leader in sustainable stainless steel. Our business is based on the circular economy: our products are made from 95% recycled materials, which we then turn into fully recyclable stainless steel. This steel is utilized in various applications across society, including infrastructure, mobility, and household appliances. We are committed to 1.5°C target to mitigate climate change, and with up to 75% lower carbon footprint than the industry average, we support our customers to reduce their emissions. Together, we are working towards a world that lasts forever. Outokumpu Corporation employs approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. Read more: www.outokumpu.com