Russian steel company MMK Group announced operating and financial results for the first quarter of 2026, indicating a decline in figures both quarterly and year-on-year due to a slowdown in business activity in the domestic market and seasonal factors.
In the first quarter, MMK's pig iron production decreased by 5.5% quarter-on-quarter to 2.38 million tons due to major repairs blast furnaces, and steel output decreased by 3.8 percent to 2.45 million tons. The company's finished steel sales totaled 2.25 million tons, down 8.5 percent year-on-year, reflecting seasonal weakness and a continued slowdown in the Russian steel market. Sales of premium products fell 10.9 percent year-on-year to 908,000 tons, mainly due to lower demand for cold-rolled and coated steel, with their share of total sales falling to 40.4 percent.
Year-on-year, pig iron production rose 9.1 percent, driven by less downtime at repairs, and steel output decreased by 4.9 percent. Sales of steel products fell 7.4 percent year-on-year amid unfavorable market conditions. Sales of premium products decreased 10.3 percent year-on-year, primarily due to lower plate shipments from Mill 5000. Meanwhile, coal concentrate production rose 18.6 percent quarter-on-quarter to 787,000 tons, but was down 1.6 percent year-on-year.
As for financial indicators, MMK reported revenue of 129.03 billion rubles. ($1.40 billion) in the first quarter, down 11.5% from the previous quarter due to lower sales volumes and changes in sales mix. EBITDA fell sharply by 55.9 percent to RUB 8.62 billion ($93 million), with an EBITDA margin of 6.7 percent. The company recorded a net loss of RUB 1.37 billion. ($14.8 million) in this quarter compared to the profit of the previous quarter, mainly due to a decrease in revenue.
In addition, free cash flow amounted to negative RUB 14.14 billion. (-$153 million), mainly due to a decrease in EBITDA and an increase in the outflow of working capital.
Compared to the first quarter. In 2025, MMK's revenue fell by 18.6 percent, and EBITDA decreased by 56.4 percent, which reflects the worsening price situation and demand in the Russian steel market.
