AMAG AUSTRIA METALL AG: GOOD EARNINGS IN THE FIRST QUARTER OF 2025
- Q1/2025 benefited from volume increases in the Rolling Division as well as higher aluminium prices and premiums in the Metal Division
- Revenues grew by around +20% to EUR 401.4 million due to price and volume factors (Q1/2024: EUR 335.8 million)
- EBITDA increased by around +9% to EUR 46.1 million (Q1/2024: EUR 42.4 million)
- Net income after taxes of EUR 16.2 million, up around +22% on the previous year (Q1/2024: EUR 13.3 million)
- Cash flow from operating activities up by over +40% to EUR 51.1 million (Q1/2024: EUR 35.6 million)
- Outlook 2025: Q1 still insignificantly affected by US tariffs (25% in force since 12 March 2025). Increasing negative effects will become apparent from 2/2025. From today's perspective, full-year EBITDA of EUR 110 million to EUR 140 million can be achieved
AMAG Austria Metall AG recorded increases in both revenue and earnings in the first quarter of 2025. In addition to an almost +10% increase in shipments in the Rolling Division, a higher aluminium price and higher premiums in the Metal Division had a positive effect. As expected, the difficult environment in the European automotive industry made itself felt in the Casting Division.
AMAG Group's revenues grew by almost +20% to EUR 401.4 million (Q1/2024: EUR 335.8 million) as a result of higher shipment volumes and a higher aluminium price. Total shipments in Q1/2025 grew by around +6% to 110,800 tonnes (Q1/2024: 104,200 tonnes).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by around +9% to EUR 46.1 million after EUR 42.4 million in the first quarter of the previous year.
The Metal Division generated EBITDA of EUR 20.6 million in the first quarter of 2025 (Q1/2024: EUR 17.2 million) and benefited from continued stable production at the Alouette smelter in Canada. A higher aluminium price more than offset the negative effects of the increase in the price of alumina in the fourth quarter of 2024. The division also benefited in Q1/2025 from the significant increase in US Midwest premiums before the US import tariffs came into force on 12 March 2025.
The difficult market environment in the European automotive industry was reflected in the Casting Division's earnings performance. As a result of the lower price level coupled with higher energy costs, EBITDA totalled EUR 0.9 million in the first quarter of 2025 after EUR 2.2 million in the same quarter of the previous year.
In the first quarter of 2025, the Rolling Division achieved increases in sales of industrial applications and packaging products. This successfully cushioned the decrease in volumes in the aerospace and heat exchanger sectors as well as in other transport (lorries). EBITDA amounted to EUR 24.4 million after EUR 22.5 million in the first quarter of 2024. However, the global US import duties of 25% on aluminium products are having an increasing impact on order intake and are leading to shifts in the product mix and increased price pressure.
After taking into account depreciation and amortisation of EUR 22.3 million (Q1/2024: EUR 22.2 million), AMAG Group's earnings before interest and taxes (EBIT) increased by 18% to EUR 23.8 million (Q1/2024: EUR 20.2 million).
Net income after taxes totalled EUR 16.2 million in the first quarter of 2025, up around +22% on the previous year (EUR 13.3 million).
Cash flow from operating activities benefited in particular from the high operating profit and grew by 44% to EUR 51.1 million (Q1/2024: EUR 35.6 million). Changes in working capital largely cancelled each other out as at 31 March 2025. Taking into account the cash flow from investing activities in the amount of EUR -16.8 million (Q1/2024: EUR -26.0 million), a free cash flow of EUR 34.4 million (Q1/2024: EUR 9.6 million) was generated.
Net financial debt as at 31 March 2025 improved to EUR 356.1 million (31 December 2024: EUR 382.3 million). There was also an increase in cash and cash equivalents to EUR 306.2 million as at 31 March 2025 (31 December 2024: EUR 278.8 million).
Outlook 2025:
Global GDP growth forecasts have been revised sharply downwards compared to the estimates at the start of the year. The global economy is anticipated to grow by +2.8% (previously: +3.3%), with growth in the USA now only at +1.8% (previously: +2.7%) and in the Eurozone at a meagre +0.8% (previously: +1.0%). Stagnation is now expected for the German economy (previously: +0.3%).*
Dr. Helmut Kaufmann, Chief Executive Officer of AMAG: "The current economic environment is characterised by increased uncertainties as a result of the diverse and fluctuating trade policy measures. These considerable volatilities require the ability to adapt rapidly – a quality that characterises us as AMAG. We will act in our usual flexible and customer-orientated manner. Nevertheless, it can be assumed that the upheavals in the global economy will also affect AMAG's business development.”
In the Metal Division, the further course of business – assuming that production remains stable – will be significantly affected by price trends for aluminium, premiums and raw materials. In recent years, primary aluminium has been sold on the North American market due to tariff advantages for Canada. The global US import tariffs on aluminium products, which have been in force since 12 March 2025, are expected to lead to the elimination of these tariff advantages in the remainder of the year.
In the Casting Division, the tense market environment in the European automotive industry is leading to price declines. It can currently be assumed that the US tariffs may have an indirect impact on shipments of recycled cast alloys to European automotive customers.
From today's perspective, market-related shifts in the product mix are enabling solid capacity utilisation in the Rolling Division, but are also impacting earnings. Around 30,000 tonnes of rolled products, which corresponds to around 15% of total shipments, are directly affected by the US tariffs. The indirect impact on AMAG's shipments to European customers is difficult to forecast at present.
The volatile framework conditions, particularly with regard to trade policy measures, make the earnings forecast for the remainder of 2025 significantly more difficult. From today's perspective, full-year EBITDA of EUR 110 million to EUR 140 million can be achieved. This assessment is based, among other things, on the fundamental assumption that current tariff conditions, in particular the global US import tariffs on aluminium products, will remain unchanged.
