SSAB Reports Revenue and Earnings Decline Amid European Market Weakness

Earnings Decline Highlights Pressure on European Steel Market

Swedish steelmaker SSAB has reported a notable decline in both revenue and earnings for the second quarter of 2025, citing falling steel prices and weak European demand. The company’s Q2 revenue totaled just under $2.7 billion, marking a 9.4% drop from the same period in 2024. Earnings per share (EPS) fell sharply by 23.4%, down to $0.20 from $0.26 a year ago.

SSAB President and CEO Johnny Sjöström attributed the weaker earnings to “lower prices of standard steel,” a direct reflection of cooling demand in the European market. He acknowledged that while the overall result declined year-over-year, operating performance had improved from the previous quarter. This was mainly due to better pricing in SSAB Americas, where local demand and price strength helped offset broader global turbulence.

Despite external challenges like trade barriers and U.S. steel tariffs, Sjöström emphasized that the company’s exposure in North America remains manageable thanks to its strong domestic production footprint. However, he did acknowledge that special high-strength steel exports from northern Europe to the U.S. face new headwinds.

SSAB Focuses on Green Steel and EAF Conversions for Long-Term Growth

While current financial results show strain, SSAB’s focus keyphrase strategy for long-term sustainability and competitiveness is taking shape. Projects to convert traditional blast furnace and basic oxygen furnace (BF/BOF) operations to electric arc furnaces (EAFs) in Luleå and Oxelösund are progressing steadily. These upgrades aim to slash carbon emissions, cut costs, and improve product quality.

According to Sjöström, these EAF projects are designed to “largely remove CO₂ emissions,” aligning with SSAB’s decarbonization goals. The company’s initiative ties into its partnership with Volvo Cars, which recently agreed to purchase SSAB Zero—a fossil-free steel product. Additionally, Volvo will supply high-grade scrap steel, to be recycled in Oxelösund’s new EAF facility.

This circular strategy positions SSAB as a leader in green steel production, with emphasis on sustainability, innovation, and cost-efficiency. These developments may also strengthen SSAB’s market appeal in the growing sectors of automotive and renewable infrastructure.

SuperMetalPrice Commentary:

SSAB’s Q2 results illustrate the dual reality of today’s steel market: immediate financial pressures coupled with long-term innovation. The softness in European pricing reflects macroeconomic challenges, including overcapacity and subdued industrial demand. However, SSAB’s commitment to green steel through EAF transformation and partnerships with automotive OEMs signals a forward-looking strategy. If successful, this pivot could protect SSAB from future price volatility and strengthen its position as a top-tier supplier in a decarbonizing global economy.