Investing.com -- SSAB reported stronger third-quarter earnings on Wednesday, beating analyst expectations as higher steel prices and shipments supported results.
The Swedish steelmaker's EBITDA rose to SEK 3.26 billion from SEK 2.89 billion a year earlier, beating Visible Alpha consensus by 6%, according to Jefferies. Operating profit increased 15% to SEK 2.16 billion, while revenue climbed 12% to SEK 25.63 billion. Earnings per share edged up to SEK 1.56 from SEK 1.49.
Jefferies, however, cautioned that a weaker pricing outlook in the U.S. could limit the scope for further earnings upgrades in the final quarter.
Jefferies maintained its "buy" rating and SEK 117 price target, implying 19% upside from its reference price of SEK 98.22. The broker said the earnings beat was driven primarily by SSAB Special Steels, while results at SSAB Europe and Tibnor also exceeded estimates. SSAB Americas fell short of expectations.
However, the broker said the outlook for the fourth quarter was more cautious. Although SSAB expects somewhat higher realised prices across its steel divisions, Jefferies described the pricing outlook for the Americas as disappointing, questioning whether contract timing could delay the expected benefit until 2027.
SSAB Europe was the main contributor to the year-on-year improvement, with its operating result recovering to a profit of SEK 329 million from a loss of SEK 179 million. Higher prices and shipments helped lift its EBITDA margin to 9% from 4%.
For the fourth quarter, shipments are expected to rise at SSAB Europe, remain stable at SSAB Americas and decline somewhat at SSAB Special Steels. Jefferies said consensus EBITDA of SEK 3.8 billion remained achievable if prices moved towards the upper end of the expected range, while its own estimate stood at SEK 4 billion.
The broker does not expect material changes to the current 2026 consensus EBITDA estimate of SEK 14 billion following the quarterly beat, citing the more cautious near-term outlook.
Looking further ahead, it forecast 2027 EBITDA of SEK 17.6 billion, compared with consensus of SEK 18.1 billion, supported by EU trade measures and sustained strength in U.S. plate prices.
SSAB lowered its 2026 capital expenditure estimate to SEK 11.2 billion from SEK 13.5 billion, reflecting revised supplier-payment timing.
Original Article
SSAB posts 6% EBITDA beat as as higher steel prices offset maintenance costs
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