# Outokumpu - A continuous rollercoaster or a serious investment?

**URL:** https://forum.inderes.com/t/outokumpu-jatkuvaa-vuoristorataa-vai-vakavasti-otettava-sijoituskohde/621
**Category:** Osakkeet
**Tags:** outokumpu
**Created:** [October 24, 2018, 3:33pm UTC](https://forum.inderes.com/t/outokumpu-jatkuvaa-vuoristorataa-vai-vakavasti-otettava-sijoituskohde/621 "2018-10-24T15:33:44Z")
**Posts on this page:** 1
**Showing post:** 4045

<div class="post-metadata">

### Author: ![Petri\_Gostowski](https://forum.inderes.com/user_avatar/forum.inderes.com/petri_gostowski/32/42479_2.png) [@Petri\_Gostowski](https://forum.inderes.com/u/Petri_Gostowski)
#### Post date: [November 10, 2026, 7:28am UTC](https://forum.inderes.com/t/outokumpu-jatkuvaa-vuoristorataa-vai-vakavasti-otettava-sijoituskohde/621/4045 "2026-11-10T07:28:15Z")

</div>

@Realmcrusader already partly answered that, but Europe’s weak earnings performance is due, among other things, to the fact that at current demand levels it is being operated at a low utilization rate. In other words, demand from Outokumpu’s customers is low relative to the Tornio mill’s production capacity. This low utilization rate then translates into inefficient production, as not enough output is generated to absorb high fixed costs. The utilization rate, in turn, is low due to generally sluggish demand, and because Outokumpu has a large mill, a significant portion of its deliveries consists of so-called bulk products, for which demand is currently low given the sluggishness in construction, consumer goods, and the automotive industry, among others.

And as a result of these factors, the Europe business as a whole is running at an EBIT-level loss, and in Q4, I believe even at an EBITDA loss.

Over the past 10 years, I’ve also personally wondered about the net figure of all those cost savings—where do they actually vanish to? On the other hand, you can look at this efficiency challenge from the perspective that when Outokumpu’s total costs were around 5.3 billion in 2025, it doesn’t take much cost inflation at all to trigger an increase of over +100 MEUR in expenses. So simply maintaining earnings requires efficiency improvements if end-product prices don’t rise. This approach is, of course, a very rough simplification, since in reality, within the cost structure, things like raw material prices fluctuate up and down from year to year. But perhaps this sheds some light on heavy industry’s compulsive need for efficiency improvements and, on the other hand, the challenge of saving enough to actually see it trickle down to the bottom line.

@PaulKo It was certainly a surprise to me as well that after imports had already declined early in the year, and there was already talk in Q4’25 about buyers holding back on import purchases due to concerns over tariffs and CBAM, imports then rebounded so noticeably in Q2. The reason this hits Outokumpu so hard is also that H2 demand hasn’t improved, and stainless steel buyers have generally remained very cautious. So you could say that imports in the first half of the year were higher than expected due to Q2, and on the other hand, H2 demand has been weaker than expected.

---

_[View the full topic](https://forum.inderes.com/t/outokumpu-jatkuvaa-vuoristorataa-vai-vakavasti-otettava-sijoituskohde/621)._