Russian metallurgical concern Severstal announced a decrease in net profit by 74% compared to the same period last year to 4.06 billion RUBLES ($51.9 million) in the second quarter of 2026, and revenue decreased by 9% to 169.56 billion RUBLES ($2.17 billion) amid lower average steel prices and an increase in the share of semi-finished products in sales portfolio.
The company's EBITDA decreased by 38% compared to the same period last year to RUB 24.40 billion. ($311.6 million), EBITDA margin decreased by 7 percentage points. to 14%, and free cash flow amounted to minus 29.82 billion RUB. ($380.8 million) due to a decrease in revenue, an outflow of working capital and the implementation of an investment program.
In this quarter, Severstal steel production increased by 12 percent year on year to 2.80 million tons, and sales of steel products increased by nine percent to 3.03 million tons. Sales of semi-finished products increased by 60 percent to 378,000 tons, sales of commercial steel increased by seven percent to 1.22 million tons, and sales of high value-added products increased by one percent to 1.43 million tons.
Commenting on the results, CEO of Severstal PJSC Alexander Shevelev said that although conditions in the Russian metallurgy remain challenging, the company saw early signs of stabilization in the second quarter, helped by a slight recovery in construction activity in June, infrastructure projects and government programs. He added that domestic prices for hot-rolled sheets increased by
