Aperam's Market and Financial Trends Update for Q3 2024

Aperam S.A. released an update on Q3 2024 market and financial trends, preparing for the upcoming quarterly results on November 8, 2024. The company expects a slight increase in Group adjusted EBITDA for Q3 2024, compared to EUR86 million in Q2 2024, while market consensus stands at EUR93 million.

The Recycling & Renewables segment is projected to show normalized annual EBITDA of EUR80-85 million, though Q3 results might be slightly lower than Q2. Stainless & Electrical Europe is expected to experience a decrease in adjusted EBITDA due to seasonal slowdowns. Conversely, Stainless & Electrical Brazil should see higher adjusted EBITDA due to improvements in hot rolling mill performance.

Alloys & Specialties and Services & Solutions segments are anticipated to report lower adjusted EBITDA due to summer maintenance and slowing volumes. Meanwhile, net working capital is set to increase, leading to higher net debt for Q3.

Commodity prices and exchange rates have shown minor fluctuations, but the impact on earnings should be minimal. While some raw material prices have softened, inventory valuation remains slightly positive but lower quarter-on-quarter.