Outokumpu Ups EBITDA Improvement Goal to €350 Million, Strengthening Market Position

Outokumpu Ups EBITDA Improvement Goal to €350 Million, Strengthening Market Position

(IN BRIEF) Outokumpu, in a robust advancement of its strategic plan, has increased its EBITDA run-rate improvement target by €150 million to €350 million, aiming to bolster its competitiveness in the stainless steel industry. Achieving its initial target ahead of schedule by the end of Q1 2024, with an improvement of €233 million, the company is now setting a higher goal to be reached by enhancing operational efficiency and commercial strategies. Heikki Malinen, President & CEO of Outokumpu, highlighted the significance of ongoing profitability improvements to maintain a competitive edge. The company’s broader financial goals, including a net debt to EBITDA ratio below 1.0 and a stable dividend policy, remain unchanged in its strategy for 2023-2025.

(PRESS RELEASE) HELSINKI, 7-May-2024 — /EuropaWire/ — 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.

Media Contacts:

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

Media:
Päivi Allenius
VP – Communications & Brand
tel. +358 40 753 7374

Outokumpu media desk
+358 40 351 9840

SOURCE: Outokumpu Oyj