Outokumpu interim report January-September 2026 - Solid third quarter profitability and EVOLVE strategy progressing well

Highlights in Q3 2026

• Solid result in the seasonally slower third quarter, with adjusted EBITDA stable at EUR 101 million compared with the previous quarter, supported by stronger profitability in business areas Americas and Ferrochrome, while business area Europe weakened slightly.
• Stainless steel deliveries decreased by 7% from the previous quarter amid weak European demand, elevated customer inventories and seasonality, while US demand remained good.
• Demand for Outokumpu's low-emission ferrochrome remained good, including higher-margin new grades among new customers. Deliveries nevertheless decreased by 4% from the previous quarter, mainly due to seasonality.
• Operating cash flow was EUR -83 million impacted by an increase in working capital. Net debt increased to EUR 348 million.
• EUR 100 million restructuring program progressing ahead of schedule, with approximately EUR 60 million in savings expected in 2026.
• EVOLVE growth strategy progressing:
  • Building on established position and expertise, selected high-nickel alloys were successfully manufactured in industry-leading coil widths using existing production capabilities.
  • Advancing Avesta high-nickel alloy investment program across commercialization, product development and operations.
  • Expanding business area Ferrochrome's product portfolio for new customer segments.
  • Launching EvoMaterials® brand to commercialize proprietary technology, with the pilot plant on track to be operational in the first half of 2027.

1. Adjusted EBITDA = EBITDA - Items affecting comparability.
    

President & CEO Kati ter Horst

During the third quarter, stainless steel market conditions in Europe remained challenging. Continued subdued end-use demand combined with seasonal slowdown and elevated customer inventories resulted in lower deliveries. Demand was stronger in selected industrial segments, such as data centers and energy, while household appliances and automotive remained weak. Although policy mechanisms contributed to a decline in stainless steel imports, the lower import volumes were not enough to offset the broader market weakness.

The business environment in Americas was clearly stronger, with deliveries increasing by 7% from the previous quarter. Activity remained solid across several industrial and infrastructure-related segments, while consumer durables remained weak, as in Europe. Higher deliveries and prices supported strong profitability in Americas with the best quarterly adjusted EBITDA in three years.

Ferrochrome also had a strong quarter, and demand for our low-emission ferrochrome remained at a good level, including new higher-margin grades among new customers. Charge chrome production in South Africa is gradually increasing following an agreement on subsidized electricity price aid and this is putting pressure on charge chrome spot prices.

Despite continued weakness in Europe with 12% lower deliveries, we delivered a solid result in the seasonally slower third quarter, with group adjusted EBITDA stable at EUR 101 million compared to the previous quarter. Operating cash flow turned negative due to an increase in working capital, resulting also in higher net debt. We remain focused on disciplined cash flow and balance sheet management. Our EUR 100 million restructuring program is progressing faster than planned, and we now expect to achieve approximately EUR 60 million of the savings in 2026.

Our EVOLVE growth strategy is gaining momentum. We have successfully produced selected high-nickel alloys for specific customers and applications, using our existing production capabilities with industry-leading coil widths. This milestone creates a solid base for next steps in high-nickel alloys, demonstrates the strong expertise of our teams and supports the expansion of our Advanced Materials business. The recently launched investment program at Avesta is advancing according to plan, and preparations are underway to install an electroslag remelting unit in the existing melt shop, with start-up planned for the first quarter of 2028. The unit will enable further purification of the alloys and support customer qualification across a broader range of grades and applications. At the same time, we are conducting a detailed engineering study for the second phase greenfield investment in new melting and casting capabilities, with commissioning planned for the end of 2029.

During the New York Climate Week, we launched EvoMaterials®, marking the next phase in commercializing proprietary technology for producing low-CO₂ metals. Combining lower emissions with greater processing efficiency, this technology has the potential to fundamentally transform the production of critical materials. Construction of our pilot plant is progressing as planned, and the operations are expected to begin in the first half of 2027.

Turning to safety, our performance in the third quarter fell short of our expectations. We are taking focused action to strengthen safety in our day-to-day operations with key focus on reducing the risk of serious incidents. Our priorities are to strengthen risk awareness, implement targeted controls and ensure that corrective actions are identified and carried out.

As the global sustainability leader in stainless steel, we continue to make smart decarbonization investments. During the quarter, we inaugurated a new agglomeration plant and began biocoke production in Tornio, Finland. Replacing fossil coke with biomass-based biocoke in ferrochrome production enables us to reduce our annual carbon dioxide emissions and lower our exposure to future carbon costs.

I thank our employees, customers, suppliers and shareholders for their continued support. Despite the uncertainty on European demand recovery, I remain confident that our EVOLVE growth strategy makes us stronger by creating new profitable growth platforms.

Outlook for Q4 2026

Adjusted EBITDA in the fourth quarter of 2026 is expected to be affected by lower delivery volumes across the businesses and higher costs. The impact is expected to be largest in business area Europe, where demand is anticipated to remain weak and customer inventory levels are elevated.

Stainless steel delivery volumes are forecast to decrease by 5-15% from the third quarter of 2026.

With current raw material prices, some raw material-related inventory and metal derivative losses are forecasted for the fourth quarter.

Guidance for Q4 2026

Adjusted EBITDA in the fourth quarter of 2026 is expected to be at a similar level to the EUR 10 million recorded in the fourth quarter of 2025.

A live webcast and conference call today, November 6, at 2:30pm EET

A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 2:30 pm EET at: https://outokumpu.events.inderes.com/q3-2026 hosted by President and CEO Kati ter Horst and CFO Marc-Simon Schaar.

To ask questions, please participate in the conference call by registering at https://events.inderes.com/outokumpu/q3-2026/dial-in. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.

All result materials, a link to the webcast and later its recording will be available at www.outokumpu.com/en/investors.

For more information:

Investors: Johan Lindh, VP, Investor Relations, tel. +358 40 837 3994
Media: Päivi Allenius, SVP, Communications and Public Affairs, tel. +358 40 753 7374, or Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at)outokumpu.com

Outokumpu Corporation