Swiss Steel Group Faces Challenges with Dropped Revenue and a Negative EBITDA in 2023

Swiss Steel Group has released its financial results for 2023, reporting a significant decrease in sales volume and revenue, alongside a negative adjusted EBITDA due to weak markets and one-time losses. The company announced a revenue drop of 20% to EUR 3,244.2 million from EUR 4,051.4 million in 2022. The adjusted EBITDA turned negative, reaching EUR –40.9 million compared to EUR 217.0 million in the previous year.

The decline in sales volume by 17% to 1,375 kilotons from the previous year was attributed to reduced demand, especially in the second half of 2023. The company faced a challenging environment, with muted order activity from the mechanical and plant engineering sectors, below pre-pandemic European automotive production levels, and increased imports affecting demand.

To address these challenges, Swiss Steel Group has initiated a series of strategic and operational measures. These include a planned capital increase of approximately EUR 300 million and new financing arrangements to strengthen the group's financial position. The group has also embarked on divestments and restructuring initiatives to optimize its portfolio and reduce costs.

Despite the financial downturn, Swiss Steel Group reported a positive free cash flow of EUR 85.4 million, thanks to effective net working capital reduction and divestment efforts. These measures are part of the broader SSG 2025 strategy, aimed at building a resilient and competitive Swiss Steel Group focused on core business optimization and sustainable profitability.