SSAB Ab

Q3 operating performance: shipments up, earnings up vs LY (but costs pressured) - Shipments: 1,530 kt, +64 kt (+4%) YoY; down vs Q2 due to maintenance (-230 kt / -13%). - Earnings: EBITDA stable at +13% YoY in relative terms; absolute improvement of ~SEK 0.4bn driven by better EBITDA/tonne (mix/price offset some volume loss). - Revenue: SEK 25.6bn, -1.9bn vs Q2 (-7%)—revenue fell less than volumes, implying prices rose during Q3.

Net cash / balance sheet: strong liquidity; dividend already paid; CapEx timing revised - Net cash: SEK 8.4bn, gearing ~-11% (within guidance range ±20%). - Dividend: SEK 2bn paid in Q2 (no mention of buybacks). - CapEx guidance updated: strategic CapEx reduced for 2026 by ~SEK 2bn (timing of invoicing); continued estimate for CO₂ allowance spend similar to last year (~SEK 780–800m). - Strategic CapEx mix: mainly Luleå (~SEK 4.2bn) and Oxelösund (~just below SEK 3bn).

Key cost negatives (surprising to some investors) with partial confidence of pass-through - Cost pressure: higher alloys, logistics/transport, and CO₂ allowance costs; also some inventory effects around maintenance. - CO₂ allowance cost impact: expected to rise materially—~SEK 600m last year vs ~SEK ~2bn this year (notably hitting Europe/Special Steels). - Freight/logistics constraints described as especially disruptive for Special Steels (freight limitation and spikes previously “not foreseeable”), creating volatility risk. - Management stance: price increases are expected to outpace costs, though timing and volatility remain uncertain given fast-changing events (war, transport bottlenecks).