Metinvest Reports $191 Million Loss, Yet Avoids Deeper Crisis

Metinvest's 2025 Financial Performance

According to Главком: In 2025, the Metinvest mining and steel group saw its consolidated revenue decline by 6% year-on-year to $7.24 billion. The company also posted a net loss of $191 million, a figure six times smaller than the previous year's loss. This revenue downturn was primarily driven by the halt in operations at the Pokrovsk coal group, falling global commodity prices, and reduced iron ore sales.

Revenue Breakdown and Market Position

Metinvest's revenue structure revealed a stark contrast between its business segments:

• The steel segment grew by 6% to $5.1 billion, accounting for 71% of total revenue.
• In the mining segment, EBITDA contracted by 48% to $424 million.
• Conversely, the steel segment's EBITDA surged by 51% to $437 million.

The group's adjusted EBITDA fell by 24% to $765 million, with the EBITDA margin dropping to 18% from 21% the year before. Operating profit stood at $319 million, a positive swing from the $858 million loss recorded in 2024. Impairment losses also decreased significantly to $90 million from $1.3 billion a year earlier. Domestic sales shrank by 11% to $2.3 billion, representing a 32% share of revenue, while international sales declined by 3% to $4.94 billion. Europe remained the group's largest market, accounting for 44% of sales, with volumes growing by 3%.

As of year-end, Metinvest held approximately $375 million in cash, with total Eurobond debt at $1.26 billion. The company continues its European expansion, having acquired a pipe plant in Romania and progressing with a green steel project in Italy. The Ukrainian steel industry, a cornerstone of the nation's industrial exports, faces significant headwinds from both the war and shifting global trade policies.

Meanwhile, the EU's full implementation of the CBAM (Carbon Border Adjustment Mechanism) for Ukraine in 2026 is projected by the NBU (National Bank of Ukraine) to potentially reduce Ukraine's GDP by $11.3 billion over five years. "We have partially offset the negative impact by improving operational efficiency," stated Group CEO Yuriy Ryzhenkov.

"We have partially offset the negative impact by improving operational efficiency." - Yuriy Ryzhenkov

It is also noteworthy that Ukraine's largest steel companies paid UAH 190 billion in taxes over the past five years. The industry climate remains challenging: ArcelorMittal Kryvyi Rih announced the closure of its blooming mill and foundry-mechanical plant, affecting over 3,000 employees.

Despite the revenue contraction in 2025, Metinvest demonstrated resilience in its steel segment, suggesting a degree of business stability amid economic turbulence. However, negative trends in mining and broader economic challenges, including new EU tariffs, pose risks for the company's future growth and the sector overall. Metinvest's continued actions in international markets and the adoption of new production technologies may prove key to navigating these challenges.

As the Ukrainian steel sector navigates through turbulent times, understanding how major players sustain operations amid ongoing challenges is crucial. Insights into the resilience of Ukraine's steel industry during wartime can provide valuable context for Metinvest's recent performance and strategic decisions.