Feb 6 (Reuters) - European stainless steel producer Aperam (APAM.AS) , opens new tab reported fourth-quarter core earnings slightly below market expectations on Friday, hampered by low steel prices and continued weak demand in Europe.

Adjusted earnings before interest, taxes, depreciation and amortisation were 67 million euros ($79 million) in the quarter, while analysts polled by LSEG had forecast 68.4 million euros on average.

Sign up here.

That was more than 40% lower than in the same period in 2024.

Price pressure, seasonality and annual maintenance in Brazil were major drivers for the profit decline, along with low demand in Europe and a weak oil and gas industry, the company said.

Its stainless and electrical steel business took the brunt of it, with a 74% year-on-year core profit contraction in the fourth quarter.

Still, Aperam CEO Sud Sivaji said the core earnings were solid, as the company "gears up to positive momentum" on the back of European trade defence measures that should start to yield results in the second half of 2026.

The group also said its core earnings would rise in the first three months of 2026, compared to the final quarter of last year.

EU MEASURES SET TO BOOST PRICES

Aperam's results were weighed down by a contraction of stainless and electrical steel prices in 2025. For the fourth quarter, company data showed a 16% drop on the year in the average selling price.

But this year, European steelmakers are set to benefit from increased protection in the European Union thanks to the recently enacted Carbon Border Adjustment Mechanism (CBAM) and the European Commission's proposal to cut import quotas.

Analysts have said this should bring a greater price acceleration in 2026.

The CBAM, in place since January 1, is the EU's tool to levy carbon-intensive goods entering the bloc to even the playing field for domestic producers, who have to adhere to stricter environmental criteria.

https://www.reuters.com/business/steelmaker-aperams-core-profit-slightly-lags-market-view-2026-02-06/