Salzgitter AG: 1Q26 Results – A Wide Beat on Net Debt

Research evidence excerpt

Salzgitter AG: 1Q26 Results – A Wide Beat on Net Debt

Update

May 12, 2026 06:05 AM GMT

Morgan Stanley & Co. International plc+MSalzgitter AG | Europe Alain Gabriel, CFA

Equity Analyst

1Q26 Results – A Wide Beat on Alain.Gabriel@MorganStanley.comIoannis Masvoulas, CFA +44 20 7425-8959

Ioannis.Masvoulas@morganstanley.com +44 20 7425-0427

Net Debt Adahna Ekoku

Adahna.Ekoku@morganstanley.com +44 20 7425-0578

Reaction to earnings Ferdinand Huber

Research Associate

Unchanged Meaningful upside Largely unchanged Ferdinand.Huber@morganstanley.com +44 20 7677-2702

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Salzgitter AG (SZGG.DE, SZG GY)

Source: Company data, Morgan Stanley Research

Carbon Steel | Germany

Stock Rating Equal-weight

Key Takeaways Industry View In-Line

Price target €45.50

FY26 guidance maintained following the 1Q26 pre-release update Shr price, close (May 11, 2026) €50.90

52-Week Range €58.45-18.50

1Q26 EBITDA in line with pre-release, Steel Production and Trading beat offset by Mkt cap, curr (mn) €2,753

Net debt (12/26e) (mn)* €1,177

weaker Processing EV, curr (mn)* €5,035

Net debt substantially lower on timing of decarbonisation subsidies and lower * = GAAP or approximated based on GAAP

capex/NWC outflows

Salzgitter had already pre-released its 1Q26 results and provided updated FY26

guidance for EBITDA/EBT (see here). Today's 'new' information pertains to FCF and

ND, as well as divisional outlooks.

Net debt (company definition) was substantially lower on timing of subsidies

and lower NWC outflows. FCFE came in at €+263mn vs MSe at €-203mn, with the

difference explained by €332mn of cash received for SALCOS subsidies, and the

remaining variance explained by lower capital expenditure and NWC cash outflows.