Aperam - Full year and fourth quarter 2024 results: “Alloys & Specialties and Recycling & Renewables exemplify the value inherent in Aperam’s differentiated value chain”

Full year and fourth quarter 2024 results1

“Alloys & Specialties and Recycling & Renewables exemplify the value inherent in Aperam’s differentiated value chain”

Luxembourg, February 7, 2025 (07:00 CET) - Aperam (referred to as “Aperam” or the “Company”) (Amsterdam, Luxembourg, Paris, Brussels: APAM, NYRS: APEMY), announced today results for the three months and full year ended December 31, 2024.
 

Highlights

Strategic initiatives

Prospects[1]a

Financial Highlights (on the basis of financial information prepared under IFRS)

Health & Safety results

Health and Safety performance based on Aperam personnel figures and contractors’ lost time injury frequency rate was 1.2x in the fourth quarter of 2024 compared to 2.4x in the third quarter of 2024.

Financial results analysis for the full year period ended on December 31, 2024

Sales for the year ended December 31, 2024 decreased by 5.1% at EUR 6,255 million compared to EUR 6,592 million for the year ended December 31, 2023, due to lower raw material prices and despite higher shipments. Shipments in 2024 increased by 4.2% at 2,290 thousand tonnes compared to 2,198 thousand tonnes in 2023.

Adjusted EBITDA reached EUR 356 million for the year ended December 31, 2024 (excluding a net exceptional gain of EUR 2 million), compared to EUR 304 million for the year ended December 31, 2023 (excluding an exceptional loss of EUR (11) million). Group Adjusted EBITDA increased by 17.1% due to higher volumes, an improved mix and higher margins. Phase 5 of the Leadership Journey® - the Transformation Program - realized EUR 95 million gains in 2024.

Depreciation and amortization expense was EUR (229) million for the year ended December 31, 2024, including an impairment loss of EUR (4) million.

Aperam had an operating income for the year ended December 31, 2024 of EUR 129 million compared to an operating income of EUR 89 million for the year ended December 31, 2023.

Financing costs, net, including the FX and derivatives result for the year ended December 31, 2024 were at EUR (50) million, including cash cost of financing of EUR (47) million.

Income tax benefit for the year ended December 31, 2024 was EUR 154 million (including EUR 199 million of net deferred tax assets recognized on tax losses carried forward and other tax benefits).

Aperam recorded a net income of EUR 231 million for the year ended December 31, 2024.

Cash flows from operations for the year ended December 31, 2024 were positive at EUR 280 million, including a working capital release of EUR 44 million. CAPEX for the year ended December 31, 2024 was EUR (152) million.

Free cash flow before dividend for the year 2024 amounted to EUR 125 million, compared to EUR 168 million for the year 2023.

As of December 31, 2024, total equity amounted to EUR 3,366 million and net financial debt was EUR 544 million. Gross financial debt as of December 31, 2024 was EUR 760 million. Cash & cash equivalents were EUR 216 million.

Total cash returns to shareholders in 2024 amounted to EUR 145 million, fully consisting of dividends (of which EUR 1 million paid to non-controlling interests).

Aperam had liquidity of EUR 1,396 million as of December 31, 2024, consisting of cash and cash equivalents of EUR 216 million, undrawn credit lines of EUR 680 million and a EUR 500 million undrawn bridge term facility for the acquisition of Universal Stainless & Alloy Products Inc.

Financial results analysis for the three-month period ended on December 31, 2024

Sales for the fourth quarter of 2024 decreased by 1.5% at EUR 1,471 million, compared to EUR 1,493 million for the third quarter of 2024. Shipments decreased from 617 thousand tonnes in the third quarter of 2024 to 505 thousand tonnes in the fourth quarter of 2024, due to lower volumes in the recycling & renewables segment and despite seasonally higher steel shipments.

Adjusted EBITDA increased during the quarter to EUR 116 million (excluding an exceptional gain of EUR 2 million) from EUR 99 million (excluding an exceptional gain of EUR 8 million). Major drivers were a positive mix, lower purchase prices and positive valuation effects that overcompensated lower volumes and lower prices.

Depreciation and amortization expense was EUR (54) million for the fourth quarter of 2024, including an impairment loss of EUR (1) million.

Aperam had an operating income for the fourth quarter of 2024 of EUR 64 million compared to an operating income of EUR 49 million for the previous quarter.

Financing costs, net, including the FX and derivatives result for the fourth quarter of 2024 were EUR (6) million. Cash cost of financing was EUR (13) million during the quarter.

Income tax expense for the fourth quarter of 2024 was EUR (46) million (including EUR (16) million of net deferred tax assets de-recognized on tax losses carried forward and other tax benefits).

The net result recorded by Aperam was a profit of EUR 12 million for the fourth quarter of 2024, compared to a profit of EUR 179 million for the third quarter of 2024.

Cash flows from operations for the fourth quarter of 2024 were at EUR 172 million, including a working capital release of EUR 133 million. CAPEX for the fourth quarter was EUR (27) million.

Free cash flow before dividend for the fourth quarter of 2024 was EUR 146 million, compared to an amount of EUR 9 million for the third quarter of 2024.

During the fourth quarter of 2024, cash returns to shareholders amounted to EUR 36 million, fully consisting of dividends.

Operating segment results analysis

Stainless & Electrical Steel (1)