Severstal’s net profit rose 17% year on year to RUB 15.17 billion in the third quarter of 2026. Revenue fell 3% to RUB 173.54 billion as lower sales were partly offset by higher prices and a shift in product mix.
EBITDA increased 13% to RUB 39.98 billion, while the EBITDA margin gained three percentage points to 23%. The company attributed the improvement to recovering steel prices and cost-cutting measures.
Crude steel output was broadly unchanged at 2.72 million tonnes. Steel product sales fell 9% to 2.61 million tonnes, mainly due to lower pig iron and slab shipments as more material was processed into finished products. Sales of high-value-added products declined 6% to 1.35 million tonnes, although their share of total sales rose to 52%.
For January–September, revenue fell 10% year on year to RUB 488.41 billion, EBITDA dropped 28% to RUB 82.32 billion and net profit declined 61% to RUB 19.29 billion. Crude steel output rose 2% to 8.24 million tonnes, while steel product sales were broadly flat at 8.26 million tonnes.
Severstal CEO Alexander Shevelev said Russian steel demand grew by about 1% year on year in the first nine months. The company has consequently revised its full-year forecast to an estimated 0.5% decline in consumption, from a previous forecast of a 7% drop. It expects seasonal weakening in demand in the fourth quarter.
Severstal kept its 2026 capital expenditure forecast at RUB 112 billion. Key projects, including the pellet plant in Cherepovets, are scheduled to be commissioned in the fourth quarter. The company expects full-year free cash flow to remain negative and will not pay dividends for the nine-month period.
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