en.Wedoany.com Reported - Russia's Severstal (MOEX: CHMF) reported a 9% year-on-year increase in metal product sales in the second quarter of 2026, reaching 3.03 million tons, but revenue fell 9% year-on-year to 169.564 billion rubles due to lower average prices.
In production, pig iron output rose 5% year-on-year to 2.84 million tons, while crude steel production increased 12% year-on-year to 2.79 million tons, driven by major maintenance work last year. Metal product sales grew 9% year-on-year to 3.03 million tons, with pig iron and slab sales up 60% to 380,000 tons. Commercial steel sales rose 7% year-on-year to 1.22 million tons, supported by a 10% increase in hot-rolled sheet deliveries to 960,000 tons. High-value-added product (VDS) sales reached 1.43 million tons, up 1% year-on-year, mainly driven by growth in cold-rolled and galvanized coil sales. Due to faster growth in semi-finished and hot-rolled coil sales, the share of high-value-added products in total sales fell 4 percentage points year-on-year to 47%. Third-party iron ore sales increased 24% to 740,000 tons.
In financial performance, revenue fell 9% year-on-year to 169.564 billion rubles, due to lower average selling prices for metal products and an increased share of semi-finished products in the sales mix. EBITDA declined 38% year-on-year to 24.4 billion rubles due to lower revenue, with an EBITDA margin of 14%, down 7 percentage points year-on-year. Despite a 9% year-on-year decline in slab production costs to 23,218 rubles per ton, EBITDA still fell due to revenue decline. Free cash flow stood at -29.824 billion rubles (compared to 3.614 billion rubles in the second quarter of 2025), mainly due to lower EBITDA, increased cash outflows from working capital, and continued implementation of investment plans. Working capital cash outflows amounted to 22.394 billion rubles, driven by an increase in accounts receivable and a reduction in factoring operations. Investment fell 42% year-on-year to 25.284 billion rubles. Net profit was 4.062 billion rubles, down 74% year-on-year, in line with the decline in revenue.
