Klöckner & Co SE ETR: KCO reported second-quarter 2026 EBITDA before material special effects of €63 million, placing the steel and metal distributor in the upper half of its full-year guidance range, as higher pricing and growth in its European business supported results.
CEO Guido Kerkhoff said reported shipments declined slightly from a year earlier, primarily because the company sold eight U.S. distribution sites at the end of 2025 as part of its focus on higher-value-added products and services. On a divestment-adjusted basis, however, group shipments rose 4.3% year over year and sales increased 12.1%.
Reported sales rose 3% year over year, supported by a higher average price level. Gross profit fell to €243 million from €320 million in the prior-year quarter, while gross profit margin declined to 14.4%. CFO Oliver Falk said the decline was primarily attributable to a write-down at Becker Group, rather than a deterioration in the underlying operating business.
Segment performance
In Kloeckner Metals Americas, reported shipments fell about 8% from a year earlier, reflecting the divestment of the eight U.S. sites. Excluding those locations, shipments increased 4.7%, while sales climbed 13.5%, aided by pricing conditions. The segment generated EBITDA before material special effects of €42 million.
Kloeckner Metals Europe continued what management described as a turnaround, with shipments increasing 3.6% and sales rising 10.4% year over year. EBITDA before material special effects reached €20 million, its highest quarterly level since the first quarter of 2023 and the segment’s second consecutive quarter of positive earnings contribution.
Falk said that, on a like-for-like basis, the group benefited from a €13 million positive volume effect and a €21 million positive price effect. Operating expenses increased €27 million from the previous year, driven mainly by higher personnel expenses and increased costs for shipments and operating supplies. The company reported no significant foreign-exchange effects.
EBITDA after material special effects was negative €108 million, mainly due to effects associated with the planned divestment of Becker Group.
Cash flow and debt
Klöckner generated operating cash flow of €10 million in the second quarter and free cash flow of €7 million after net capital expenditures of €3 million. The company benefited from a €156 million change in net working capital, although interest, tax payments and other cash outflows totaled €38 million.
Net financial debt rose to €1.108 billion at the end of the quarter from €1.092 billion at the end of the prior quarter. Falk said that while free cash flow was positive, it was more than offset by lease, foreign-exchange and dividend-payment effects totaling €33 million. These effects were partly offset by a €9 million IFRS reclassification related to the planned Becker Group divestment and €2 million from other items.
The company also said the number of digital quotes increased about 9.5% year over year as it continued reducing manual processes and allowing sales teams to focus more on value-added activities.
Market outlook and guidance
Kerkhoff said demand trends improved during the second quarter in the U.S. and Mexico following a generally weak start to the year. The company continues to expect North American real steel demand to rise 1% to 2% in 2026, while noting risks from the conflict in the Middle East and unpredictable trade policy.
Management expects infrastructure and non-building spending in North America to expand 11% in 2026, while it sees strong activity in power transmission and renewable energy. Kerkhoff also cited expected recovery in heavy trucks and trailers, as well as robust defense shipbuilding activity. He said Klöckner had recently received several large multiyear defense shipbuilding programs.
In Europe, the company continues to expect real steel demand to increase by up to 2% in 2026, although it described the recovery as moderate and uneven. Steel consumption remains below pre-pandemic levels, while industrial activity in Germany remains subdued, Kerkhoff said. The company now expects flat automotive development in Europe, a downward revision from its prior forecast.
For the full year, Klöckner expects a slight decline in shipments and a slight increase in sales compared with 2025. It reaffirmed guidance for EBITDA before material special effects of €170 million to €250 million and expects positive operating cash flow, though below the 2025 level.
During the question-and-answer session, Kerkhoff said the third quarter had begun strongly and in line with the second quarter. He also said the planned sale of Becker Group remained on track to close during the current fiscal year.
About Klöckner & Co SE (ETR:KCO)
Klöckner & Co SE, through its subsidiaries, distributes steel and metal products. The company operates through three segments: Kloeckner Metals US, Kloeckner Metals EU, and Kloeckner Metals Non-EU. It offers flat steel products; long steel products; tubes and hollow sections; stainless steel and high-grade steel; and aluminum products for building installations, roof and wall construction, and water supply. The company also provides various services, including cutting and splitting of steel strips; forming and manufacturing of pressed parts; CNC turning/milling; 2D/3D tube laser cutting; laser and water jet cutting; structural steel processing; plasma and oxy-fuel cutting; shot blasting and primer painting; and sawing/drilling/rounding off.
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