Severstal Q2 2026: Revenue decline eases but net profit plunges 74% YoY

Severstal reported Q2 2026 revenue of RUB 169.6bn, down 8.6% YoY — an improvement from the 18.7% YoY decline in Q1 2026, indicating accelerating revenue growth (i.e., a less negative rate). EBITDA fell 39.7% YoY to RUB 23.1bn, also a milder decline than the 54.5% drop in the prior quarter. However, net profit slumped 74.1% YoY to RUB 4.1bn, reversing the prior quarter's anomalous 170.5% YoY surge.

Q2 2026 vs Q2 2025: Key metrics YoY change

Margin and cost dynamics

The EBITDA margin compressed sharply to 13.6% (EBITDA/revenue) from 20.7% a year ago, reflecting cost pressures and lower steel prices. Net profit margin fell to 2.4% from 8.4% in Q2 2025, weighed by higher depreciation and financial charges. The sequential improvement in revenue and EBITDA trends suggests some stabilization in demand, but profitability remains under severe strain.

Key figures (RUB m)

Outlook

Severstal's Q2 results show a mixed picture: revenue decline is moderating, but net profit remains deeply negative on a YoY basis. The company's net debt rose significantly over the past year, adding financial leverage. Key watchpoints for the coming quarters include steel price trends, cost inflation, and any updates on dividend policy or capex guidance. The sequential improvement in top-line trends offers a tentative positive signal, but margin recovery will be critical for earnings momentum.