Download PDF

1. Company Snapshot

1.a. Company Description

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally.It offers cold rolled coils, strips, and sheets; precision strips; hot rolled coils, strips, and plates; quarto plates; precise components, including welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, press plates, roll shells, and blancs and disks; semi-finished stainless steel long products comprising billets and blooms, forged and rolled billets, cast slabs, ingots, and rebar; and stainless steel wire rods, wires, and bars.Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy and marine; and heavy industries.


Outokumpu Oyj was founded in 1910 and is headquartered in Helsinki, Finland.

Show Full description

1.b. Last Insights on OUT1V

Outokumpu Oyj's recent prospects are bolstered by improved industry demand and a stronger earnings outlook, prompting analysts to raise their price targets from €3.49 to €3.68. The company's EVOLVE strategy is driving investments in critical carbon-free materials, such as a $45 million pilot plant in the US for chromium metal and enriched ferrochrome production. This project, set to operate in H1 2027, represents a significant step in scaling up proprietary technology. With no recent earnings release indicating otherwise, Outokumpu's strategic investments and favorable industry conditions position the company for potential growth.

1.c. Company Highlights

2. Outokumpu's Q3 2025 Earnings: A Mixed Bag

Outokumpu's adjusted EBITDA for Q3 2025 was EUR 34 million, reflecting weakness in the European market. The company's EPS came in at -0.06, beating estimates of -0.11333. Stainless steel deliveries decreased by 11% due to subdued demand in Europe, with European deliveries down 12% and Americas down 6%. The company's revenue growth is expected to be around 8.2% next year, according to analyst estimates.

Publication Date: Nov -30

📋 Highlights
  • Adjusted EBITDA Decline: Q3 2025 adjusted EBITDA fell to EUR 34 million due to European market weakness, down from prior periods.
  • Stainless Steel Deliveries Drop: Overall deliveries declined 11%, with Europe down 12% and Americas down 6% quarter-on-quarter.
  • Cost-Saving Progress: Achieved EUR 42 million in savings year-to-date, on track for EUR 60 million annual target amid EUR 100 million restructuring plan.
  • U.S. Low-Carbon Metal Investment: Allocated USD 45 million for a U.S. pilot plant to scale proprietary low-carbon metal technology for high-value sectors.
  • Q4 EBITDA Outlook: Expects lower Q4 adjusted EBITDA than Q3, with stainless steel deliveries dropping 5-15% due to European weakness and seasonal factors.

Financial Performance

The company's net debt increased to EUR 230 million, with strong liquidity of EUR 1.1 billion. The P/E Ratio is currently at -35.86, indicating that the stock may be overvalued. However, the Dividend Yield is attractive at 6.43%, which may appeal to income investors. The EV/EBITDA ratio is 11.66, suggesting that the company's enterprise value is reasonable compared to its EBITDA.

Operational Highlights

The company is on track with short-term cost-saving measures, reaching EUR 42 million in savings year-to-date, and aims to reach EUR 60 million by the end of the year. A restructuring plan worth EUR 100 million is underway, with collective negotiations in key European production countries. The company is also investing USD 45 million in a new pilot plant in the U.S. to scale up its proprietary technology for low-carbon metals.

Outlook and Guidance

The company expects Q4 2025 adjusted EBITDA to be lower than Q3, with stainless steel deliveries expected to decrease by 5-15% due to market weakness in Europe and seasonal slowdown in Americas. Maintenance breaks and ERP system rollout will impact adjusted EBITDA by around EUR 20 million. Despite a negative EBITDA impact, the company is confident about its Ferrochrome business, with solid demand and available capacity to utilize.

Strategic Developments

The company is confident about its future direction, with its EVOLVE strategy taking steps towards higher resilience and better performance through cost restructuring and investments in growth. The implementation of new quotas is expected to bring down Asian import levels in Europe to about 15% from the current almost 30%. This would create a level playing field for European producers and help utilize capacity.

CBAM and Safeguards

The company expects CBAM (Carbon Border Adjustment Mechanism) to be implemented as of January and is hoping for clarification on reference values and scopes before the end of the year. Having all scopes in CBAM would be helpful, but even an imperfect form would be better than nothing. The European Commission's safeguarding proposal is expected to have a positive impact, but it's still early to see significant changes.

3. NewsRoom

Card image cap

Outokumpu invests approximately USD 45 million in a chromium metal and enriched ferrochrome pilot plant in the U.S.

Oct -29

Source:

Card image cap

Basic Materials Roundup: Market Talk

Oct -08

Source:

Card image cap

How Recent Developments Are Shaping Outokumpu’s Story and Analyst Valuation Targets

Oct -04

Source:

Card image cap

One-third of firms paused or delayed stainless steel orders due to tariffs, Outokumpu says

Sep -22

Source:

Card image cap

LVMH: Share transactions disclosure

Sep -09

Source:

Card image cap

The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

Source:

Card image cap

Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

Source:

Card image cap

What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.72%)

6. Segments

Europe

Expected Growth: 3.5%

Outokumpu Oyj's 3.5% growth in Europe is driven by increasing demand for stainless steel in the automotive and construction industries, supported by EU's green initiatives and infrastructure development. Additionally, the company's cost-saving initiatives and strategic investments in digitalization and sustainability contribute to its growth momentum.

Americas

Expected Growth: 4.2%

Outokumpu Oyj's 4.2% growth in Americas is driven by increasing demand for stainless steel in the region's automotive and construction industries, coupled with the company's strategic expansion into the US market, and favorable trade policies. Additionally, growing investments in renewable energy and infrastructure projects are boosting demand for Outokumpu's specialty steel products.

Ferrochrome

Expected Growth: 3.8%

Outokumpu Oyj's Ferrochrome segment growth of 3.8% is driven by increasing demand from stainless steel producers, particularly in Asia, and the company's cost-cutting initiatives. Additionally, the segment benefits from Outokumpu's diversified customer base and its ability to adapt to changing market conditions.

Other

Expected Growth: 4.5%

Outokumpu Oyj's 4.5% growth is driven by increasing demand for stainless steel in the automotive and construction industries, coupled with the company's successful cost savings initiatives and strategic investments in emerging markets, such as Asia and South America.

7. Detailed Products

Stainless Steel

High-quality stainless steel products for various industries, including construction, transportation, and consumer goods.

Ferritic Stainless Steel

Cost-effective and corrosion-resistant ferritic stainless steel products for automotive, construction, and industrial applications.

Austenitic Stainless Steel

High-temperature resistant austenitic stainless steel products for chemical processing, oil and gas, and power generation industries.

Duplex Stainless Steel

High-strength and corrosion-resistant duplex stainless steel products for oil and gas, chemical processing, and marine industries.

Precipitation Hardening Stainless Steel

High-strength and corrosion-resistant precipitation hardening stainless steel products for aerospace, industrial, and sports equipment applications.

8. Outokumpu Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Outokumpu Oyj is moderate due to the availability of alternative materials and technologies in the stainless steel industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the customer base and the lack of concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of raw materials and the dependence of Outokumpu Oyj on these suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the stainless steel industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large players in the industry, leading to a competitive market with high levels of advertising and promotional expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.49%
Debt Cost 10.43%
Equity Weight 89.51%
Equity Cost 10.43%
WACC 10.43%
Leverage 11.72%

11. Quality Control: Outokumpu Oyj passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Outokumpu

A-Score: 5.4/10

Value: 6.9

Growth: 2.6

Quality: 2.9

Yield: 8.1

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Alleima

A-Score: 4.8/10

Value: 5.2

Growth: 5.2

Quality: 5.1

Yield: 3.1

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Klöckner

A-Score: 4.8/10

Value: 8.9

Growth: 2.2

Quality: 1.5

Yield: 6.2

Momentum: 6.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Stalprodukt

A-Score: 4.7/10

Value: 5.8

Growth: 2.3

Quality: 3.5

Yield: 5.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Salzgitter

A-Score: 4.4/10

Value: 9.6

Growth: 2.4

Quality: 2.1

Yield: 1.9

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Cognor

A-Score: 3.9/10

Value: 7.2

Growth: 1.6

Quality: 2.2

Yield: 4.4

Momentum: 5.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.02$

Current Price

4.02$

Potential

-0.00%

Expected Cash-Flows