The Salzgitter steel group is striving to get back into the black and is relying on the arms industry as a new customer.
“This is a growth area that we definitely want to occupy, also because it is a high-margin growth area,” said Salzgitter boss Gunnar Groebler when presenting the balance sheet for 2025. In terms of volume, this remains a niche market. “But a very attractive niche market.”
However, the defense sector will “definitely” not be able to compensate for the weakness of the auto industry as the previous main customer, the CEO added. But the volume, which according to Groebler has so far been negligible, is expected to increase noticeably. The company expects initial successes in the second half of the year, and within three years the share of defense in group sales should then increase to a single-digit percentage.
“We received almost all of the approvals last year Bundeswehr “We have achieved this and are now able to deliver to the Bundeswehr,” said Groebler. In addition, a specialist supplier of safety steel, Thyrolf & Uhle from Dessau, was purchased. “We are so well positioned that we can and want to participate significantly in this growing market.”
The share, which had lost around 9 percent in the morning in the wake of the weak industry environment in connection with an ultimatum from Donald Trump to Iran, temporarily turned positive with the market at midday. Most recently, however, it was quoted 0.34 percent lower at 35.60 euros via XETRA.
Efficiency program is being expanded
The efficiency program, which has been running since 2022 and has now been expanded again, should also help: Instead of the 500 million euros in earnings improvement that was last targeted by 2028, it is now expected to bring in 575 million. The first 250 million euros will have already been reached in 2025. “In 2026, we will get another three-digit million euro amount,” said Groebler. The target is 122 million euros this year, after 129 million euros last year.
“We have clearly exceeded our goal in 2025,” said Groebler. The self-imposed goal was exceeded by a third. Hardly any jobs were cut: the core workforce only shrank by a good 400 to around 24,000 employees. “The program is designed in such a way that we are not talking about personnel measures, i.e. no structural measures,” said Groebler. Instead, savings are made in procurement and logistics.
Return to profitability in sight
In the past year, the steel company has already significantly reduced its losses despite a weak steel environment. In 2025, the bottom line was a loss of 69.8 million euros, after a loss of 347.9 million euros the year before, as the company announced. In 2024, the result was still characterized by high value adjustments, provisions and conversion costs.
Before taxes, the loss in 2025 was 28 million euros. In 2026, the company is targeting an adjusted pre-tax profit of between 75 and 175 million euros. The steel company, which is now listed again in the MDAX of medium-sized stocks, had already announced this in its preliminary figures in February. External sales, which have recently declined, are also expected to rise again – from 8.98 to around 9.5 billion euros. In 2024 it was still 10.01 billion euros.
This does not yet include the planned takeover of Hüttenwerke Krupp Mannesmann (HKM) from thyssenkrupp Steel on June 1, 2026. Thyssenkrupp Steel had previously announced that it would withdraw from the joint venture or close it. So far, Thyssenkrupp holds 50 percent there, Salzgitter 30 percent.
HKM steelworks is supposed to fill the gap in Russia
The purchase should be finalized by the end of May, said Groebler. A restructuring report is still pending, but is in progress, as well as approval from the antitrust authorities. But he sees no signs of delays. “The goal is for us to take over HKM completely by summer this year.” And, Groebler continued: “It is economically attractive for us.”
HKM is then to be radically restructured within three years: the two blast furnaces are to be replaced by plants for green steel, and the workforce is to shrink from the previous 3,000 to 1,000, according to previous information. “The schedule is ambitious, we know that,” said Groebler. The main reason is the funding that has already been approved for the switch to green steel, which provides for a three-year period. “We will definitely see the first steps of transformation this year.”
In the long term, he sees a good future for HKM. Because the company also supplies preliminary products for the booming industry Defense industry. In addition, after the renovation, HKM should expand its portfolio and include intermediate products that previously came from Russia. According to Groebler, this will strengthen the European internal market and fill the gap caused by the sanctions against Russia.
SALZGITTER (dpa-AFX)
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