Aperam sees higher earnings in Q2 but warns of further price pressure, shares fall

Luxembourg-based steel group Aperam APAM on Wednesday reported first quarter adjusted core earnings slightly above market expectations, but saw its shares fall as weak European base prices and market volatility clouded the group's outlook.

Aperam said increased volumes in Brazil and contributions from the consolidation of U.S.-based Universal Stainless would support second quarter earnings but warned of "ongoing price pressure in Europe".

The stock was down 8% at around 0800 GMT, nearly erasing the 8.9% year-to-date gains it had made up to the previous session's close.

"Given its relatively larger European footprint (and smaller U.S. exposure vs peers), we expect the material weakness in European base prices, which have been impacted by lower demand and greater de-stocking following high levels of imports in 2022, to likely remain a headwind on margins," JP Morgan analysts said in a research note.

Aperam reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 86 million euros ($97.80 million) in the three months ended March, compared to 55 million euros in the same period in 2024.

EBITDA was slightly higher than the average 84 million euros expected by analysts, according to a company-compiled consensus.

While the group expects its debt to decrease in line with the growth in core earnings in the second quarter, market volatility prevented it from outlining "reliable projections for the remainder of the year," group CEO Timoteo Di Maulo said in a statement.

Aperam was spun off from Luxembourg-based peer ArcelorMittal MT in 2011. ArcelorMittal reported first-quarter core profit above market expectations on Wednesday, while expressing caution on the short-term outlook due to global trade disruptions.

($1 = 0.8794 euros)