Aperam Reports Q4 and Full-Year 2024 Financial Results
Luxembourg-based Aperam SA, a leading global stainless steel producer, has revealed its financial results for the fourth quarter (Q4) and the full year of 2024. Despite facing challenges in steel shipment volumes, the company saw notable improvements in certain key financial metrics, reflecting its ongoing adaptation to market conditions and strategic acquisitions.
Q4 2024 Performance
In the fourth quarter of 2024, Aperam recorded a net profit of €12 million, a sharp decline from €179 million in Q3 2024. This significant reduction in profit comes despite steady performance in several other areas. The company’s sales revenues for the quarter totaled €1.7 billion, marking a 1.5% decrease from Q3 and a 5.2% drop compared to Q4 2023.
Steel shipments in Q4 saw a notable dip, with an 18.1% quarter-on-quarter decrease and a 6.6% year-on-year drop, falling to 505,000 metric tons (mt). This decline in shipments is largely attributed to weaker market demand and economic headwinds affecting the global steel industry. However, despite these setbacks, Aperam’s adjusted EBITDA saw a 17.2% increase compared to Q3 2024 and a 110.9% increase year-on-year, totaling €116 million for the quarter. This growth in EBITDA demonstrates the company’s ability to improve margins and efficiency, even in challenging market conditions.
Full Year 2024 Results
Looking at the full year, Aperam posted a net profit of €231 million, a modest increase from €203 million in 2023, signaling steady overall growth. Sales revenues for the year reached €6.25 billion, reflecting a 5.1% decrease from the previous year. The decline in revenues can largely be attributed to lower raw material prices, which have impacted the global steel sector. Despite these challenges, the company reported an adjusted EBITDA of €356 million, up by 17.1% compared to 2023. This growth in EBITDA was driven by higher volumes, an improved product mix, and higher margins.
In terms of steel shipments, Aperam showed growth of 4.2% year-on-year, with shipments totaling 2.29 million mt in 2024. This increase indicates a strong recovery in steel demand during the year, with Aperam benefiting from its diversified product offerings and regional market presence.
Looking Ahead: Future Projections and Strategic Acquisitions
Aperam has provided cautious guidance for Q1 2025, forecasting a decline in EBITDA due to continued pressure on steel prices and a potential slowdown in demand. Additionally, the company anticipates a rise in its net financial debt in the near term due to its acquisition of Universal Stainless, a deal aimed at expanding Aperam’s footprint in the U.S. and enhancing its product capabilities in the stainless steel sector.
The acquisition, which is expected to be finalized in the near future, aligns with Aperam’s strategy to broaden its market reach and enhance its production capabilities. While this acquisition will increase debt levels initially, it could provide substantial long-term benefits by diversifying Aperam’s customer base and reinforcing its position in the stainless steel market.
