Salzgitter shares are crashing: opportunities or risks for investors?

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Salzgitter shares under pressure: forecast reductions, price losses and challenges in the steel sector characterize the current financial situation.

Salzgitter-Aktie unter Druck: Prognosesenkungen, Kursverluste und Herausforderungen im Stahlsektor prägen die aktuelle Finanzlage.
Salzgitter shares under pressure: forecast reductions, price losses and challenges in the steel sector characterize the current financial situation.

Salzgitter shares are crashing: opportunities or risks for investors?

The situation at the Salzgitter steel group remains tense. Currently recorded Salzgitter share a decrease of 0.6 percent in XETRA trading and is at EUR 25.58. This development is causing concern among investors, even as analysts continue to see potential for future gains. The share peaked at EUR 29.72 in July 2025, which represents an increase of over 16 percent compared to the previous weeks. The average value of the share is estimated at EUR 25.92, which indicates a fairly stable valuation.

However, Salzgitter faces serious challenges. At the financial conference in August 2025, a loss of EUR -1.02 per share was reported, which represents a significant deterioration compared to the previous year. Sales have also fallen worryingly: almost 9 percent to EUR 2.34 billion. The upcoming collective bargaining round will have a decisive impact on share prices, especially for companies like Salzgitter and thyssenkrupp, both of which are struggling with declines. Finally, the next earnings report is eagerly awaited for the third quarter of 2025 to provide more insight into the company's financial health.

Weak second quarter and lowered forecasts

The situation is not getting any easier as Salzgitter has lowered its forecasts for the full year after a weak second quarter. How Stock Express reported, the second quarter was worse than analysts expected, which led to a dramatic fall in share price: the share price fell by almost 16 percent on Friday morning.

The revised operating profit targets (Ebitda) are now around 30 percent below the consensus estimate. For 2023, the sales forecast has been lowered to 9.0 to 9.5 billion euros, previously it was 9.5 to 10 billion euros. Ebitda is now also estimated at 300 to 400 million euros, which represents a sharp decline compared to previous expectations. The pre-tax losses could be up to 100 million euros, which is alarming.

Factors weighing on the industry

The steel manufacturing environment remains tense due to several factors. High energy prices and the pressure from cheap imports from Asia are putting a lot of pressure on manufacturers. Salzgitter has also introduced a stricter austerity program to reduce financial pressure. thyssenkrupp also sees itself forced to take measures to reduce costs for its steel division.

The pursuit of decarbonization also entails significant investments needed to address the industry's challenges. ArcelorMittal has even halted billion-dollar plans to convert to “green steel” in Germany, underscoring the uncertainty in the industry.

Overall, the Salzgitter share is facing difficult times, but the experts agree: In the long term, the situation could improve again if market conditions stabilize.