The company SIJ - Slovenska industrija jekla, d.d. hereby publishes the SIJ Group consolidated results for 2024, as one of the most challenging years in the history of the European steel industry.

Geopolitical tensions, weak demand in key markets, and record levels of pressure from imported steel, especially from Asia, where surplus steel has spilled over into the European market. In 2024, sustained high energy costs and the new network tariff system in Slovenia placed a continuous strain on the operations of Slovenia's largest steel group.

"SIJ Group's 2024 performance results reflect the challenges faced by European steelmakers, particularly in the second half of the year. We have worked hard to advance our business, commercial and sustainability objectives. Despite higher sales revenues, a return of production volumes to previous years’ levels, and a number of activities to optimise our operations, we recorded negative performance results. We remain among the three largest producers of stainless steel quarto plates in the EU, and fourth largest producer of tool steel. In 2024, we met our sustainability goals and, after two years of intensive effort, successfully obtained the ResponsibleSteel sustainable steel certification, a distinction held by only 15 steelmaking groups worldwide. In 2025, we want to create a better future for the SIJ Group. The EU has begun to recognise the importance of the materials industry and has launched initiatives to boost its competitiveness. Building on our past investments, SIJ Group will continue to focus on industries that consume the most demanding types of steel. We believe that it is in the industries that set the highest standards that European steelmakers need to find their opportunities and generate profit margins that will allow us to survive in the long term." – Andrey Zubitskiy, President of the Management Board of the SIJ Group.

According to the consolidated performance data, SIJ Group generated EUR 1.1 billion sales revenue in 2024, up 5.3% year-on-year, and produce 456,7 thousand tonnes of steel, up 20.6% on 2023. EBITDA stood at EUR 48.2 million, with an EBITDA margin of 4.6% and a loss of EUR 46.4 million. In addition to lower EBITDA, the loss in 2024 is higher compared to the previous year due to EUR 6.7 million higher financing costs and EUR 10.2 million in taxes resulting from changes to the Corporate Income tax Act in Slovenia. Exports have remained strong despite the shifting geopolitical landscape, reaching 86.9%, making SIJ Group one of Slovenia's largest export-oriented companies. Germany and Italy remain their biggest markets. Exports to the USA also strengthened from 8.5% to 9.9%, remaining a structurally strong market and poised for long-term growth despite current developments.

Sustainability targets in 2024 were met. SIJ Group has reduced their own CO2 emissions by 11.7% compared to the 2020 baseline, exceeding the target of 7.7%. They plan to halve their emissions by 2030. In the area of occupational health and safety, a high priority of the European steel industry, their fourth company was successfully certified to ISO 45001 in 2024, as per the target. Achieving the financial and sustainability objectives forms the foundation for pursuing financing aligned with sustainable development principle.  

With the support of the banks, additional sustainability-linked bonds were issued to replace the EUR 48 million SIJ6 bonds that matured in November 2024. The SIJ8 bond issue totalled EUR 22.1 million, bringing the total nominal value of sustainability-linked bonds to EUR 41.1 million.

SIJ Group's net financial debt rose by EUR 18.7 million, reaching EUR 256 million by the end of 2024. The NDF/EBITDA ratio stands at 5.3. They maintained a high equity ratio within their debt structure and, in February 2025, signed an agreement with their lending banks to establish a long-term financial structure for stability and adequate liquidity amid ongoing economic uncertainty. In April, they reached an agreement with the largest banks for continued support in financing the growth of working capital, because of increased sales in the first quarter of 2025 compared to the last quarter of last year.

In response to the negative business performance in 2024, SIJ Group undertook a series of measures that significantly helped maintain financial health. These efforts will continue in 2025. They streamlined operations and reduced all non-essential spending, halted or postponed non-strategic investments with no immediate impact, optimised inventories, adjusted work organisation within subsidiaries, and reduced the number of employees at the parent company. 

In 2024, EUR 66.1 million was earmarked for investments, while for 2025, only the most essential investments have been planned. Among the most visible investments of the past year was the completion of the strategic renovation of the heat treatment line for non-oriented electrical steels at SIJ Acroni, which, alongside the two strong business pillars of stainless steel quarto plates and special steels, created a new, third pillar – the production of the most demanding and highest quality cold-rolled electrical steel. The renovation of industrial knife production at SIJ Ravne Systems has been completed, and modern, competitive, efficient, digitalised and automated production has been established. SIJ Metal Ravne continued the modernisation and automation of its rolling mill. Both investments in the steel companies allow an increase in capacity for the production of highly demanding steels, supporting the Group’s shift toward serving industries such as aerospace, energy, oil and gas, medical and other industries that require very high standards and typically offer stronger profit margins.

In the first quarter of 2025, the SIJ Group generated EUR 271 million in sales revenue and produced 93.6 thousand tons of steel. EBITDA amounts to EUR 14.3 million, which is twice as much as in the second half of 2024. EBITDA margin was 5.3%. The Group made a loss of EUR 7.5 million.

The results achieved are consistent with first-quarter projections, as trends in steel-consuming industries have shown a slight upturn, reflected in an increase in orders during the first quarter. They would like to see further improvements in profit margins. At the same time, they recognise that the market remains highly unpredictable due to geopolitical tensions. However, after almost a year and a half of decline, signs of a long-term growth trend are emerging, and EU action could help improve the situation later in 2025. The EU has begun to recognise the importance of the materials industry for many supply chains in Europe and has already launched initiatives to boost its competitiveness under the Steel and Metals Action Plan.

The published information will also be available online at www.sij.si for a period of no less than 5 years.