Swiss Steel Group stays on strategic path amidst challenging market conditions

In a weak market environment, sales volume of Swiss Steel Group declined by 5.1% to 1,056 kilotons in 2024, with revenue falling by 14.3% to EUR 2,432 million. EBITDA improved to EUR –35.5 million, supported by one-time effects. Net debt decreased to EUR 711.4 million due to the April 2024 capital increase, which also raised equity to EUR 322.8 million (equity ratio: 19.3%). In early 2025, the Group secured new financing arrangements to support its strategic roadmap.

Amidst a global economic slowdown, with Europe being particularly affected, Swiss Steel Group continued to adapt its strategy to safeguard long-term stability. 2024 marked the second consecutive year of industrial recession in parts of Europe with significant consequences for industrial production, which declined despite earlier, more optimistic forecasts. The automotive sector, our largest customer segment, experienced a further decline in demand compared to prior year with production volume in the European automotive industry remaining significantly below the pre-pandemic level of 2019. Similarly, the German mechanical and plant engineering sectors struggled, with customers cautious about new investments due to economic and financial uncertainties. Swiss Steel Group raised its market share in 2024 in a deteriorating market in stainless and engineering steel. As a result, on a comparable basis1, our sales volume was at 1,056 kilotons in 2024, down by 5.1% compared to an already weak prior year level. As a consequence of the lower sales volume, revenue decreased by 14.3% to EUR 2,432 million.¹

In response, Swiss Steel Group implemented previously announced comprehensive measures to adjust its production schedule, reduce costs, and enhance operational efficiency. The Group also executed capacity adjustments as outlined in November 2024, aligning workforce and production capacity with market demand to ensure the Group’s long-term competitiveness. These measures, including the planned reduction of approximately 800 full-time positions, primarily affect European production sites and the sales organization in the first quarter of 2025. Overall, Swiss Steel Group reduced the workforce by 15.5% compared to 2023 to 7,450 employees at the end of 2024, the majority of which stems from changes in the Group’s scope of consolidation.

In parallel, the Group advanced its strategic roadmap under ‘SSG 2025’, with structural and operational measures aimed at freeing up resources for the core business, building resilience, and helping to deleverage the balance sheet. Following Ascometal's management seeking court protection in March 2024, Swiss Steel Group handed over responsibility for these entities, leading to the derecognition of the corresponding assets and liabilities from the balance sheet. Following the divestiture of several distribution entities in 2023, the Group continued to streamline its portfolio by selling its operations in Portugal, Argentina, Colombia and the United Arab Emirates, as well as its former headquarters in Düsseldorf. Beyond these effects, the EBITDA improvement was also supported by efficiency gains in procurement and operations, continued cost discipline, and the ability to maintain or expand market share across core segments — despite persistent raw material price pressure. The effects of these measures increased the EBITDA for the full year of 2024 to EUR – 35.5 million (2023: EUR – 102.2 million).

Reinforced capital base to support future growth

In line with our SSG 2025 program, we have reinforced our capital base in April 2024 to shift focus toward fully reentering the market, once economic conditions improve. The recapitalization and refinancing of the Group included a capital increase generating gross proceeds of approximately EUR 300 million and the extension of the Group’s material financing arrangements with our financial lenders until September 2028. As a result, the Group significantly deleveraged its balance sheet in the first half of 2024. Further contributors to a decreased net debt by EUR 117.2 million to EUR 711.4 million in the full year of 2024 were proceeds stemming from the divestment of land and buildings in Düsseldorf, Germany, as well as effects from changes in the Group’s scope of consolidation. These positive effects were partially offset by the negative cash flow in 2024.

At the end of December 2024, shareholders’ equity was EUR 322.8 million and thus above prior-year level (2023 EUR 234.4 million). As a result of the capital increase settled in April 2024, shareholders’ equity increased by EUR 287.8 million (net of transaction costs). The positive effect from the capital increase was partially offset by the negative Group result of EUR – 197.2 million. The equity ratio as of 31.12.2024 was 19.3% (31.12.2023: 12.1%).