Salzgitter AG lowers sales expectations: steel industry in the crisis!

Salzgitter AG lowers sales expectations: steel industry in the crisis!

Harz, Deutschland - Salzgitter AG is currently not making the best headlines. The steel company has corrected its sales and result forecasts for 2025 downwards. The new, expected sales of 9 to 9.5 billion euros - originally, the estimates were still between 9.5 and 10 billion euros. This adaptation is not surprising if you take a look at the unexpectedly weak half of the year. In the first six months of 2025, the outdoor turnover was 4.7 billion euros, which is a decline compared to 5.2 billion euros in the previous year. The result before interest, taxes and depreciation (EBITDA) has also decreased and is now around 117 million euros, while it was still 233 million euros in 2024. It is expected that the situation will not improve in the second half of 2025, so that Salzgitter AG must continue to adjust to a weak market development.

The decline in sales is related to the new customs plans of the US government, which cause unrest on the market. Salzgitter AG's profit fell from 1.1 billion euros in 2022 to just 204 million euros in 2025. In addition, the dividend will be considerably lower this year. The complete details on the first half of the year will be published on August 11, but the tendencies are already clear. [NDR reports] (https://www.ndr.de/nachrichten/niedersachsen/braunschweig_harz_Goettingen/stahlkonzern-salzgitter-Salkt-senkt-s- Fuer-2025,aktuellebraunschweig-352.html) from a worrying downward trend, which the industry should observe intensively.

difficulties in the steel industry

The situation in which Salzgitter AG is located reflects a bigger problem: the German steel industry has been struggling with a recession for some time. Once known as the backbone of the German economy, the industry recently produced around 37 million tons of steel. Nevertheless, this industry has to deal with the consequences of a changing market and geopolitical challenges. The national steel consumption was around 337 kilograms per person in 2023, but the production quantities fluctuate and influence sales strongly. The overall turnover of the industry recently quantified at around 45 billion euros, which is about 37 percent of the total sales revenue of the German metal industry. [Statista shows] (https://de.statista.com/themen/8407/stahl industrie-in-deutschland/)) impressively how the economic situation puts the companies under pressure.

In addition, the future of steel production is becoming increasingly uncertain. Larger companies such as Thyssenkrupp have already reduced their locations and sold business branches in order to remain competitive. In 2023/24, Thyssenkrupp had one of the lowest sales in twenty years at around 35 billion euros. The latest developments suggest that the industry is faced with a change. Many steelworks have had to close in recent decades, which had not only economic but also social consequences.

on the way to sustainability

A ray of hope could be the goal of more sustainability. The German steel industry deals intensively with the reduction of emissions. Since it is responsible for around a third of the emissions of the entire German industry, the focus is on innovative processes, such as the hydrogen method for the production of steel. Recycling also plays an important role; The last statistics show that around 14.9 million tons of steel scrap were used in Germany to produce new raw steel. Companies are forced to adapt to survive both ecologically and economically. Marketsteel reported about the challenges and positive approaches in the industry.

Finally, it can be said that Salzgitter AG and the entire steel industry have a stony path in front of it. But with a clear focus on innovation and sustainable practices, it could be possible to put the industry on a new foundation and to meet the challenges that the global market situation brings.