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1. Company Snapshot

1.a. Company Description

SSAB AB (publ) produces and sells steel products in the United States, Sweden, Finland, Germany, Denmark, and internationally.It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction.The SSAB Special Steels segment offers quenched and tempered steels, and hot-rolled advanced high-strength steel products.


The SSAB Europe segment provides strip, plate, and tubular products.The SSAB Americas segment offers heavy steel plates.The Tibnor segment distributes a range of steel and non-ferrous metals in the Nordic region and the Baltics.


The Ruukki Construction segment produces and sells building and construction products and services for residential and non-residential construction.The company markets its steel products under the Strenx, Hardox, Docol, GreenCoat, Toolox, Armox, Duroxite, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, SSAB Weathering and Cor-Ten, and SSAB Multisteel brands.It serves the heavy transport, construction, automotive, industrial, construction machinery, energy, material handling, and service center industries.


The company has a collaboration agreement with Faurecia S.E. to deliver fossil-free steel for automotive seat structures.SSAB AB (publ) was founded in 1878 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on SSAB

SSAB AB's recent performance was negatively impacted by tariff uncertainty, leading to production cuts and staffing reductions. The steelmaker's customers have adopted a wait-and-see approach, contributing to weak demand and pricing pressure. Additionally, the company faces intense competition, as evidenced by its recent crackdown on counterfeit goods in India. Furthermore, SSAB's quarterly earnings were affected by chaotic US trade policy, adding to costs and upending supply chains.

1.c. Company Highlights

2. SSAB's Q4 Earnings: A Mixed Bag

SSAB's Q4 revenues came in at SEK 22.1 billion, a 4% reduction from the previous quarter and 6% lower than Q4 last year, indicating downward price development. The company's EBITDA was SEK 1.8 billion, 8% higher than last year's Q4, driven by a 3% increase in shipment volumes. However, the operating result was SEK 756 million, negatively impacted by price development, with an average price reduction of 3%. EPS came in at SEK 0.4355, significantly lower than analyst estimates of SEK 1.61.

Publication Date: Feb -06

📋 Highlights
  • Operational Resilience:: Maintained strong operational result of SEK 6.1 billion in 2025 despite weak markets, tariffs, and revenue decline of 6% YoY.
  • Q4 Financial Performance:: EBITDA rose to SEK 1.8 billion (+8% YoY), but operating result fell to SEK 756 million due to 3% average price reduction, mainly in Europe (-SEK 500M impact).
  • Strategic CapEx Expansion:: 2026 strategic investments to reach SEK 10.5 billion, focusing on Oxelösund, Luleå projects, and advanced steel grades like Hardox HiAce.
  • Geographic and Pricing Dynamics:: Special Steels pricing varies by region, with potential for increases in Europe/US, while Americas shipments expected to rise in Q1 2026.
  • CO2 and Cost Management:: CO2 allowance transactions positively impacted cash flow, but raw material costs (e.g., +13% scrap prices) and maintenance outages pressured margins.

Segment Performance

The Europe division had a SEK 0.5 billion negative impact due to price development, while volumes contributed a positive impact of SEK 115 million. The Special Steels division saw declining margins despite flat volumes in Q4, due to a long lag between purchase price and consumption price. As Johnny Sjöström noted, "the division has a long lag between purchase price and consumption price, making it challenging to predict costs."

Outlook and Guidance

For 2026, the company plans to increase strategic CapEx to SEK 10.5 billion, with major projects including Oxelösund and Luleå. SSAB expects a strong seasonality in Q1 2026, with shipments expected to be significantly higher for Special Steels. Prices are expected to remain stable for Special Steels but increase in the Americas. The company's guidance for Europe is 0-5% higher prices, which may not reflect the full uptick in market prices due to quarterly contracts and the lag effect.

Valuation

With a P/E Ratio of 15.34 and an EV/EBITDA of 6.46, SSAB's valuation appears reasonable. The company's ROE is 7.23%, and the Net Debt / EBITDA is -0.91, indicating a healthy balance sheet. Analysts estimate next year's revenue growth at 4.4%. Given the current valuation multiples, it seems that the market has already priced in some of the expected growth, and the stock may not offer significant upside from current levels.

3. NewsRoom

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SSAB AB (publ) (SSAAF) Q4 2025 Earnings Call Highlights: Navigating Market Challenges with ...

Feb -02

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SSAB (OM:SSAB A) Is Up 6.4% After Rheinmetall Adopts Its Fossil-Free Steel At Scale

Jan -27

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Nucor (NUE) Misses Q4 Earnings Estimates

Jan -26

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SSAB to Deliver Fossil-Fuel-Free Steel to Rheinmetall

Jan -22

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Assessing SSAB (OM:SSAB A) Valuation After Strong 1 Year Shareholder Return And Green Steel Momentum

Jan -06

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POWER Digest [January 2026]

Jan -02

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Taina Kyllönen appointed as eQ’s Chief People and Communications Officer and member of the Management Team

Nov -19

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SSAB earnings top estimates amid "limited" impact from elevated U.S. tariffs

Oct -22

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.96%)

6. Segments

SSAB Europe

Expected Growth: 0.8%

SSAB Europe's 0.8% growth is driven by increasing demand for high-strength steel in the automotive and construction industries, coupled with the segment's focus on premium products and cost savings initiatives. Additionally, the European market's gradual recovery from the pandemic and the segment's strong market position contribute to its growth.

SSAB Special Steels

Expected Growth: 1.2%

SSAB Special Steels' 1.2% growth driven by increasing demand for high-strength steel in automotive and construction industries, coupled with SSAB's focus on premium products and cost savings initiatives. Additionally, the segment benefits from its strong market position and long-term contracts with key customers.

SSAB Americas

Expected Growth: 0.9%

SSAB Americas' 0.9% growth is driven by increasing demand for high-strength steel in the automotive and construction industries, coupled with the company's focus on operational efficiency and cost savings. Additionally, strategic investments in product development and customer relationships have contributed to the segment's growth.

Tibnor

Expected Growth: 1.1%

Tibnor's 1.1% growth is driven by increasing demand for steel products in the Nordic region, supported by infrastructure investments and a recovering construction sector. Additionally, Tibnor's focus on digitalization and e-commerce has improved customer experience, leading to increased sales and market share gains.

Ruukki Construction

Expected Growth: 0.7%

Ruukki Construction's 0.7% growth is driven by increasing demand for sustainable building solutions, strategic partnerships, and expansion into emerging markets. Additionally, investments in digitalization and operational efficiency have improved productivity, contributing to the segment's growth.

7. Detailed Products

High-Strength Steels

SSAB's high-strength steels are designed for demanding applications, offering high strength, good formability, and excellent weldability.

Wear-Resistant Steels

SSAB's wear-resistant steels are designed to withstand harsh environments and heavy wear, offering excellent abrasion resistance and long service life.

Structural Steels

SSAB's structural steels are designed for building and construction applications, offering high strength, good weldability, and excellent durability.

Shipbuilding Steels

SSAB's shipbuilding steels are designed for marine applications, offering high strength, good weldability, and excellent corrosion resistance.

Automotive Steels

SSAB's automotive steels are designed for the automotive industry, offering high strength, good formability, and excellent weldability.

Tubular Products

SSAB's tubular products are designed for oil and gas, construction, and industrial applications, offering high strength, good weldability, and excellent durability.

8. SSAB AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SSAB AB (publ) is medium due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the steel industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the steel industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.10%
Debt Cost 9.85%
Equity Weight 88.90%
Equity Cost 9.85%
WACC 9.85%
Leverage 12.49%

11. Quality Control: SSAB AB (publ) passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rana Gruber

A-Score: 6.7/10

Value: 6.9

Growth: 5.9

Quality: 8.0

Yield: 10.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
SSAB

A-Score: 6.2/10

Value: 7.8

Growth: 5.8

Quality: 4.5

Yield: 8.1

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Buzzi Unicem

A-Score: 6.0/10

Value: 6.2

Growth: 7.3

Quality: 7.4

Yield: 3.8

Momentum: 7.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Acerinox

A-Score: 5.9/10

Value: 5.3

Growth: 4.4

Quality: 3.0

Yield: 8.1

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Vallourec

A-Score: 5.4/10

Value: 7.3

Growth: 3.8

Quality: 6.6

Yield: 5.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Voestalpine

A-Score: 4.8/10

Value: 6.1

Growth: 1.3

Quality: 3.2

Yield: 4.4

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.42$

Current Price

77.42$

Potential

-0.00%

Expected Cash-Flows