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Klöckner Stock: Turnaround Amid Market Volatility

Felix Baarz by Felix Baarz
August 6, 2025
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Klöckner & Co. reported a surprising profit rebound in Q2 despite a 7% revenue decline to €1.6 billion. The steel trader’s operating profit before special items surged over 50% to €65 million, while net income swung from a €23 million loss last year to a €2 million profit. Lower procurement costs and optimized inventory management drove the turnaround, offsetting weaker European demand. Notably, North American sales hit record levels, contrasting with stagnant European performance. For Q3, the company forecasts operating profit between €40–80 million, reflecting ongoing market uncertainty.

Strategic Shifts Fuel Growth

Klöckner’s 2025 EBITDA outlook projects growth to €170–240 million, though sales expectations were tempered. The firm is expanding its North American electrical steel capacity to capitalize on renewable energy infrastructure demand, with a new facility set to launch in Q3. Recent acquisitions, including a Swiss building installations provider, diversified its portfolio into wear-resistant steels and defense sectors. Operating cash flow rose to €75 million, supporting stable free cash flow of €44 million despite €31 million in investments. Investors reacted mixedly, with shares fluctuating between losses and 5% gains.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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