First Half

The first half of the year was characterized by solid EBITDA and good cash generation, despite the aforementioned strike at Acerinox Europa.

EBITDA amounted to EUR 236 million. The impact of the strike on Acerinox Europa’s EBITDA was of EUR -43 million.

Operating cash flow for the first half of the year was EUR 266 million, due to the reduction in operating working capital, EUR 84 million. A payment for investment of EUR 78 million was made, and shareholders were remunerated with EUR 77 million. All in all, the Group’s net financial debt, EUR 191 million, was 44% lower than at December 31, 2023.

Bernardo Velázquez, Chief Executive Officer of the Acerinox Group, stated that: “The strength of our North American subsidiary, North American Stainless (NAS) and the high-performance alloys division has enabled the Group to improve second-quarter EBITDA over the previous quarter, despite the challenging market conditions of the stainless-steel sector and the nearly five-month strike at Acerinox Europa”.

Velázquez also said that: “Our position in the American and high-performance alloys markets, and the gradual recovery in Acerinox Europa, allow us to expect an EBITDA in the third quarter similar to that of the second quarter”.

Second quarter

EBITDA, at EUR 125 million, was 13% higher than in Q1 (47% lower than in Q2 2023). The sales margin rose to 10% (from 7% in Q1). 

At EUR 92 million, the stainless-steel division’s EBITDA was 15% higher than in Q1. The impact on Acerinox Europa’s EBITDA due to the strike was EUR -28 million across the second quarter.

The results of the high-performance alloys division remain good. EBITDA totaled EUR 34 million, 9% higher than in Q1, and the margin rose to 11% (compared to 8% in Q1)

The Group’s profit after tax and non-controlling interests totaled EUR 62 million, 17% higher than in Q1 (57% lower than in Q2 2023).

Operating cash flow for Q2 was EUR 77 million. Over the quarter, operating working capital decreased by EUR 21 million. Tax payments totaled EUR 72 million.

As of June 30, 2024, the net financial debt, EUR 191 million, fell by EUR 43 million compared with March 31, 2024.

• NAS and VDM investments

The investment plan for the North American Stainless (NAS) factory, the only integrated stainless steel mill in the United States, is advancing on schedule. The structure for the melting shop expansion is under construction, the foundation works for the cold rolling mill are being carried out, and the first deliveries of equipment have been received.

The investment projects at VDM Metals announced on January 11, 2024, to increase production capacity in the high-performance alloys division remain on track in terms of schedule and budget. All additional capacity is expected to be available by 2027.

• Beyond Excellence Plan (2024-2026)

Within the Strategic Plan, the Acerinox Group continues its drive for operational excellence through its Beyond Excellence Plan (2024-2026), which aims to boost competitiveness through new continuous improvement projects.

The goal of the Plan is to improve EBITDA by EUR 100 million over the period 2024-2026. In 2024, the Group’s annual target is EUR 45 million. In this regard, the improvements achieved in the first half of the year amounted to EUR 20 million, which represents a 44% improvement over the aforementioned target.

• Acerinox signs agreement to acquire Haynes International

On February 5, Acerinox announced the signing of an agreement under which its North American subsidiary, North American Stainless (NAS), will acquire Haynes International (Haynes), a leading U.S. company in the development, manufacture and commercialization of technologically advanced high-performance alloys.

During the first half of the year, the authorization phase required by U.S. legislation and authorities was satisfactorily completed. Following a favorable decision by the European countries set to review the transaction from a foreign direct investment (FDI) perspective, the transaction now only awaits the approval of the Austrian and UK competition authorities, which are expected to issue their decisions during Q4.

• Negotiation of the Collective Bargaining Agreement at Acerinox Europa

Acerinox Europa and the Works Council signed the IV Collective Bargaining Agreement for the plant, valid until December 31, 2027, which will allow the development of its strategy thanks to greater efficiency, flexibility and diversification. Among other measures, we would like to highlight the following:

• The new agreement includes a wage increase of approximately 13% over 4 years.
• New production bonus aligned with the Group’s strategy that rewards quality, the broadening of the range of products and the production of high-performance alloys.
• Paid voluntary employee availability.
• Voluntary paid polyvalence with workforce training.
• Factory shutdown for 2 weeks in August, a period during which there is a lower level of activity. This time will be taken as an opportunity for maintenance shutdowns.
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The signing of this agreement puts an end to five months of collective bargaining, which generated a loss of 43 million euros in EBITDA.

• Shareholder remuneration

On April 22, 2024, the General Shareholders’ Meeting was held; it approved the proposed distribution of a dividend of EUR 0.62 per share. An interim dividend of EUR 0.31 per share was paid in January, and a final dividend of EUR 0.31 per share was distributed in July.

In the first half of the year, Acerinox has allocated EUR 77 million in dividends.

Acerinox will present its Q2 2024 results today, July 24, at 1:00 p.m. (CEST), led by our Chief Executive Officer Bernardo Velázquez, Chief Corporate Officer Miguel Ferrandis, and Chief Financial Officer Esther Camós, accompanied by the Investor Relations team.

To access the presentation via telephone conference, you can join 5 to 10 minutes before the event by using one of the following numbers:

From Spain:  919 01 16 44. PIN: 149046 / From the United Kingdom: 020 3936 2999. PIN: 149046 / From the United States 1 646 664 1960. PIN: 149046 / All other countries +44 20 3936 2999. PIN: 149,046

You can follow the presentation through the Shareholders and Investors section.

Both the presentation and all audiovisual material will be available here