SSAB's Q2 Profitability Rises Despite Higher Costs From Persian Gulf War

Swedish steel giant SSAB announced its second-quarter 2026 financial results, reporting a significant increase in operational profitability driven by higher prices and shipment volumes. The company demonstrated a strong performance despite elevated logistics and energy costs caused by the conflict in the Persian Gulf. These positive results underscore the effectiveness of the company's strategic pricing and market positioning.

In the second quarter, SSAB's revenue reached SEK 27.5 billion, marking an increase compared to the same period last year. The company's operating profit stood at SEK 2.7 billion, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to SEK 3.8 billion, with an EBITDA margin of 14 percent. This growth was supported by rising prices and shipment volumes across all business units. Notably, prices in the Americas division increased by 7 percent quarter-over-quarter.

However, the company's profitability was partly offset by higher logistics and energy costs resulting from the war in the Persian Gulf. SSAB CEO Johnny Sjöström stated that the year-on-year improvement in operating profit was mainly due to higher prices and shipments, which were partially counteracted by increased costs, including those for logistics and energy, as a direct consequence of the conflict. While high-strength steel markets in the Middle East were negatively affected by these hostilities, overall global market demand remained relatively stable.

The global steel markets continue to face challenges such as elevated tariffs, new carbon regulations, and persistent cost pressures. Despite strong second-quarter results, SSAB's stock traded near the upper end of its 52-week range, with investors showing caution due to potential impacts from planned maintenance work and higher costs in the third quarter. The company warned that shipments are expected to be significantly lower in Q3, with planned maintenance outages projected to cost SEK 800 million.

The war in the Persian Gulf continues to exert broad-ranging effects not only on SSAB but also on global energy and logistics markets. Such geopolitical uncertainties can lead to supply chain disruptions and commodity price volatility, negatively impacting economic activity. New trade measures and carbon regulations by the European Union, aimed at protecting the steel sector, are also shaping the competitive dynamics within the industry.

Analysts note that while SSAB's second-quarter operating profit fell short of consensus estimates, the company surpassed revenue forecasts. SSAB is pressing ahead with major strategic investments in its Oxelösund and Luleå facilities, including the transition to fossil-free steel production. The assignment of a Baa2 investment-grade credit rating with a stable outlook by Moody's further affirms the company's robust financial structure and future potential.