This article first appeared on GuruFocus .
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Fiscal Period:Q2 2026.
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Revenue:Not explicitly mentioned in the provided transcript excerpt.
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Earnings:Not explicitly mentioned in the provided transcript excerpt.
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Margins:Not explicitly mentioned in the provided transcript excerpt.
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Cash Flow:Not explicitly mentioned in the provided transcript excerpt.
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Expenses:Not explicitly mentioned in the provided transcript excerpt.
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Same-Store Sales:Not explicitly mentioned in the provided transcript excerpt.
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Store Locations:Not explicitly mentioned in the provided transcript excerpt.
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Warning! GuruFocus has detected 11 Warning Signs with APEMY.
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Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Aperam SA ( APEMY ) achieved EUR130 million EBITDA in Q2 2026 despite significant headwinds, demonstrating strong operational resilience.
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The company's diversified business model, including alloys, recycling, and distribution, reduces reliance on European stainless steel and supports stable performance.
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Aperam SA ( APEMY ) is benefiting from new trade measures (TRQs) in Europe, which have improved net margins by EUR75 per tonne on a spot basis.
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The company is investing in growth areas like aerospace, electrical engineering, and innovation products (e.g., OLED screens, Magnetec), with positive order books in aerospace.
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Aperam SA ( APEMY ) expects a lower effective tax rate (ETR) going forward, particularly in Brazil, which could boost net income.
Negative Points
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Aperam SA ( APEMY ) faces weak underlying demand in Europe, with no strong order book expected until Q4 2026 at the earliest.
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The company experienced a low double-digit negative valuation effect in Q2 2026 due to declining scrap prices, impacting results.
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Alloys segment performance fell year-over-year, primarily due to weakness in the oil and gas sector, which remains a key headwind.
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Volumes in Q2 2026 were slightly lower than guided, as Aperam SA ( APEMY ) prioritized margins over volume in a weak demand environment.
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The company faces ongoing risks from trade policy loopholes, such as the Mertert Port issue and carryover mechanisms in TRQs, which could limit margin improvements.
Q & A Highlights
Q: Could you clarify the EUR75 per tonne net margin improvement shown in the presentation? Is it for Europe only, is it an EBITDA per tonne improvement, and is it already realized in Q2 results? A: Sudhakar Sivaji, CEO: This improvement is for the European scope only, covering both our Stainless & Electrical and Distribution segments. It is a net EBITDA margin improvement per tonne, not a raw material spread improvement. It is a spot assessment as of the new TRQ measures, and only a very limited part of this improvement was present in Q2 results due to volume overhang from last year.
Q: With the structural EUR200 per tonne improvement target, do you see current market conditions allowing you to get there, or will it require something else and potentially slip into 2027? A: Sudhakar Sivaji, CEO: Summer is not an ideal quarter for these measures, so we do not see it over Q3. The margin improvement requires increased demand or reduced supply/inventory overhang. We do not see a strong order book for Q3. Q4 is typically stronger, but it is too early to give an outlook on demand for that quarter.
Q: Can you explain why the valuation effect in stainless was higher last year compared to 2026, given what nickel did? A: Sudhakar Sivaji, CEO: Raw material prices went up and down. Because we have a scrap division with a quicker rotation, any price decrease reflects more quickly in our P&L. Nicolas Changeur, CFO: In Q2, we had a low double-digit valuation impact, which we do not expect to repeat in Q3.
Q: Volumes in Q2 were slightly down versus Q1, while you guided them higher. Was this due to imports ticking up, weaker demand, or more aggressive competitors? A: Sudhakar Sivaji, CEO: Demand did not get weaker; it remained weak and stable. We chose to prioritize margins over volumes. We decided not to import to compensate for volumes, as the arbitrage did not pay off at the underlying demand level. We sold some volumes through independent distributors instead.
Q: Are you happy with the latest details of the new TRQ system, including the carryover mechanism and the Mertert Port concept? Also, what is your take on the reform of the ETS scheme? A: Sudhakar Sivaji, CEO: We welcome the trade reform and have invested in Europe. The carryover mechanism is a way to balance fair trade while keeping downstream competitive. We continue to work on loopholes like Mertert Port, and the commission's reaction on aluminum gives us promise. On ETS, it does not make a huge impact on stainless, and CBAM changes are not expected to fundamentally change our competitive advantage.
Q: Could you elaborate on the EUR35 million restructuring charges and legal provisions in Q2? What is the cash impact? A: Nicolas Changeur, CFO: We have a positive EUR59 million EBITDA impact from a PIS/COFINS gain in Brazil and EUR24 million in interest, totaling EUR83 million positive, which will be cash in 3-4 years. Against this, we have EUR30 million in provisions: 50% for European restructuring (excluding France) and 50% for litigation in other countries. The cash impact will be spread over 2-4 years, making the overall cash position positive.
Q: Can you discuss the market situation in Brazil and the impact of the project you mentioned? A: Sudhakar Sivaji, CEO: The project is for the first half of 2027. We are building inventories over a year to avoid market disruption. It is a small, low double-digit investment that increases our stainless mix and capacity. Brazil is the only player in South America, and we see the country growing. We expect a high single-digit EBITDA impact from this investment.
Q: Can you give a sneak preview of the focus for the Capital Markets Day in November? A: Sudhakar Sivaji, CEO: It will focus on three topics. First, our transformation story, showing that Aperam is not a one-trick pony but a company across the entire value chain. Second, translating our EUR700-800 million EBITDA target into executable actions. Third, exploring new markets and end-user applications beyond stainless Europe, such as aerospace, electrical engineering, and defense.
Q: On cash flow in the second half, you've only spent EUR66 million of the EUR200 million CapEx guidance. Is there anything to keep in mind about phasing? A: Nicolas Changeur, CFO: We will spend the full EUR200 million over the year, with most likely more in Q4. On working capital, we are on track with our deleveraging promise, and we are already at the net debt level we reached almost at the end of last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
