SSAB AB’s shares fell 6.8% on Thursday after the Swedish steel producer reported strong second-quarter earnings but flagged weaker shipment volumes in the third quarter, prompting profit-taking in a stock that had surged 56% year-to-date.
The Stockholm-listed company, which operates the Luleå electrified steel mill project as part of its fossil-free steel strategy, posted Q2 revenue of SEK 27.49 billion, up 7% year-over-year, while operating profit rose 26% to SEK 2.70 billion. The operating margin improved to 10%, reflecting ongoing operational efficiency gains despite industry headwinds.
The stock, which had climbed to within 6% of its 52-week high of SEK 109.55, dropped to SEK 97.60 during the session from a prior close of SEK 104.75. Earlier trading data showed the decline reaching 9.19%, with shares dipping to SEK 95.12 at one point.
Market participants cited concerns over reduced steel demand in Q3, compounded by uncertainty surrounding the Luleå project’s construction timeline and cost overruns. The facility, a cornerstone of SSAB’s decarbonization efforts, has faced repeated delays, raising questions about the pace of its fossil-free steel rollout.
European steelmakers have also contended with softer construction activity across the continent and ongoing trade policy uncertainty, which has weighed on sector sentiment. While Stockholm’s equity market traded lower alongside regional peers, U.S. indices remained relatively stable, limiting broader contagion effects.
The selloff follows a period of rapid appreciation for SSAB’s shares, which had nearly doubled from their 52-week low of SEK 51.54 in early 2026. Investors now appear to be reassessing valuations after the stock’s sharp rally, with focus shifting to operational execution and near-term demand trends.
