Russian steel company Severstal announced its operating and financial results for the first quarter of 2026, reporting a decrease in revenue, EBITDA and net profit compared to the same period last year, mainly due to weaker steel prices and a more difficult demand situation in the domestic market.
In the first quarter, sales of Severstal's steel products decreased by one percent year-on-year up to 2.63 million tons. Revenue decreased by 19% year on year to RUB 145.31 billion. ($1.95 billion), and EBITDA decreased by 54% to 17.94 billion rubles. ($240.5 million), while the EBITDA margin decreased to 12% from 22% in the same quarter of 2025. According to the company, the decrease in revenue was caused by a decrease in average sales prices of metal products and an increase in the share of semi-finished products. in sales structure.
In terms of production, pig iron output decreased by one percent year on year to 2.89 million tons, and steel production decreased by four percent to 2.72 million tons. Total sales of metal products amounted to 2.63 million tons, which is one percent less than a year earlier. At the same time, sales of pig iron and slabs increased by 80 percent, to 330,000 tons, and sales of commercial steel increased by two percent, to 1.11 million tons. However, sales of high-value-added products decreased by 14 percent year-on-year to 1.18 million tons, mainly due to lower demand for large-diameter pipes and repair work affecting part of the production capacity of coated rolled products.
Severstal said that the share of high-value-added products in total sales decreased by seven percentage points year-on-year up to 45 percent amid growing sales of semi-finished products and hot-rolled products. In addition, sales of iron ore to third parties increased by nine percent year-on-year to about 420,000 tons.
Commenting on the results, Severstal Management CEO Alexander Shevelev said demand for steel in Russia remains under pressure, noting that steel consumption in the country fell 15 percent year-on-year in the first three months 2026. He added that tight monetary policy had led to lower capacity utilization among key customers and a fall
At the same time, Mr. Shevelev noted that prices in export markets showed some growth during the quarter, which was facilitated by a decrease in exports from China after the introduction of a licensing system from January 1, 2026, rising transport costs related to the conflict in the Middle East, as well as reduced competition
