This article first appeared on GuruFocus .
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Revenue Growth:Sales improved by approximately 6% in Q1 2026.
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Melting Production:Increased by 22% quarter-on-quarter.
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Adjusted EBITDA:Grew to EUR119 million, an 18% increase compared to the previous quarter.
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Operating Cash Flow:Positive despite a 22% increase in production volumes, with working capital increase limited to EUR47 million.
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Net Financial Debt:Increased by EUR100 million, reaching EUR1.3 billion.
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CapEx Expenditures:EUR73 million spent in Q1 2026.
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Dividends Paid:EUR77 million in January.
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Stainless Division EBITDA:EUR97 million, returning to double-digit margins.
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High-Performance Alloys EBITDA:EUR23 million adjusted, EUR13 million reported, affected by EUR10 million stock adjustment.
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Order Book:Significant increase, especially in aerospace, with the best order book entries in April.
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Imports in America:Decreased by 33%, representing 21% of the total market.
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Imports in Europe:Current market share around 14%, slightly above the EU target of 13%.
Release Date: May 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Acerinox SA ( ACRXF ) reported a 6% increase in sales and a 22% growth in melting production quarter-on-quarter.
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The company's adjusted EBITDA grew by 18% to EUR 119 million, demonstrating improved financial performance.
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Acerinox SA ( ACRXF ) maintained positive operating cash flow despite increased volumes and higher raw material prices.
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The company is expanding its North American stainless steel capacity by 20%, reflecting confidence in the robust U.S. market.
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Acerinox SA ( ACRXF ) has a strong order book in the aerospace sector, with record entries in March and April, indicating future growth potential.
Negative Points
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The European market remains challenging with demand down 7% year-on-year, affecting overall performance.
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High-performance alloys (HPA) division is underperforming due to low demand in oil and gas and chemical sectors.
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The company faced a EUR 25 million inventory adjustment, primarily in Europe, due to market conditions.
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Acerinox SA ( ACRXF ) experienced a fire in one of its European pickling lines, impacting production capacity.
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Geopolitical tensions and energy crises continue to create uncertainties, delaying demand recovery and impacting customer behavior.
Q & A Highlights
Q: Can you update on capacity utilization progression since the beginning of the year, particularly in Europe, and comment on the potential US listing? A: Capacity utilization is increasing across our plants. In Spain, we expect to improve from the first quarter's 70% due to a fire recovery. In the US, we're at about 80%, and in South Africa, around 60-65%. Regarding a US listing, it's under consideration due to our strong performance in North America, but no specific timeline is set yet. We're analyzing the potential for an IPO of our American platform.
Q: Can you explain the EUR25 million inventory adjustment in Q1 and its cash impact? A: The inventory adjustment is calculated by comparing the cost versus the net realizable value of unsold inventories. It doesn't impact cash as it's for unsold materials. The adjustment is split between high-performance alloys and stainless divisions, mainly in Europe, due to low demand in sectors like oil and gas.
Q: How should we think about price appreciation in Europe and the US, and its impact on margins in Q2? A: We expect stable base prices in the US, with gradual improvements in Europe. The fire recovery in Europe will stabilize operations, and increased volumes should lead to price improvements. However, a significant price increase requires demand activation.
Q: What is the impact of the Middle East conflict on the oil and gas market within high-performance alloys, and when might HPA benefit from reconstruction needs? A: The Middle East conflict creates uncertainty, delaying oil and gas investments. While reconstruction needs may eventually benefit HPA, we aren't seeing recovery yet. We expect benefits post-conflict, but timing is uncertain.
Q: What is the outlook for high-performance alloys, given the Q1 EUR13 million EBITDA? Can we expect a return to previous performance levels? A: We anticipate improvement in HPA, especially in the second half of the year. The American contribution will increase, offsetting lower European contributions. We expect to reach previous performance levels in the second semester.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
