Towards a more stable foundation and improved market outlook

2025 was a year marked by continued weak market conditions in the steel industry. Low demand, price pressure, and geopolitical uncertainty affected both volumes and profitability. In addition to the challenging market situation, the Finnish operations were negatively impacted during the transition to a new business system. Toward the end of the year, the situation gradually improved, and the business stabilised. Overall, this resulted in BE Group’s net sales for the full year decreasing by 16 percent compared with the previous year. Earnings were further affected by one-off items related to structural measures carried out as well as write-downs of historical goodwill values.

At the same time, 2025 has been an important year for creating a more robust and competitive structure for the future. During the year, we implemented extensive structural changes. The relocation of production from Poland and Arvika, along with a clearer concentration of our industrial structure into fewer and stronger units, are important steps toward a more focused company. These measures have negatively impacted earnings in the short term but will improve our cost base, efficiency, and operational resilience going forward. They also create better conditions for developing our offering and strengthening our market position.

In parallel, we have maintained a strong focus on cost control and capital discipline. During the year, we implemented a broad cost‑rationalisation program that includes efficiency improvements in production, sales, and administration. These measures have resulted in a sustainably lower cost level and increased flexibility, contributing to improved profitability when market conditions strengthen. Cash flow has also stabilised despite weak operating results. The rights issue carried out during the year, with strong support from our shareholders, has strengthened the balance sheet and increased financial flexibility.

An important sign of strength during the year is the performance of our joint venture, ArcelorMittal BE Group SSC AB (AMBE), which also in 2025 delivered stable and satisfactory results despite a challenging market environment. AMBE thus continues to contribute positively to the Group and confirms the value of our partnership as well as our position within the thin sheets segment in Sweden.

Outlook and focus ahead

It is highly inspiring to now be in place and, together with other employees, have the opportunity to further develop the Group toward becoming an even stronger and more attractive partner for our customers. With a focused structure, an improved cost base, and a strengthened balance sheet, BE Group is better equipped for the future, and we enter 2026 with cautious but clear optimism. The recovery in the construction segment has begun, and forecasts from several industrial customers indicate a gradually improving economic outlook, although global uncertainty remains. At the same time, we expect steel prices in Europe and the Nordics to be positively affected by the introduction of CBAM and other trade policy measures, which over time will contribute to better balance between supply and demand.

With a clear strategic direction and execution on the strategy, we will build a long‑term profitable company with solid resilience throughout the economic cycle. Our focus going forward remains on capital discipline and ensuring the full impact of the structural and cost‑reduction measures implemented. We will continue to improve efficiency, regain market share, and enhance the customer experience in the Finnish operations. We will also pursue profitable growth in segments where demand is developing positively and further strengthen our sustainability offering by increasing the share of low‑carbon materials and making relevant sustainability data more accessible to our customers.

A strategic review is underway and is expected to result in a clearly updated strategy, with the ambition remaining unchanged — to build a long‑term profitable company with strong resilience throughout the economic cycle.

Finally, I would like to extend my sincere thanks to our customers, shareholders, employees, and other stakeholders for their trust, engagement, and perseverance during a demanding year.

Johan Wiig
VD och koncernchef