Gestamp’s Q3 revenue declines, market uncertainty remains
Gestamp posted weaker net revenue and Ebitda in the third quarter. Amid high uncertainty and limited market growth in the automotive sector, the Spanish firm has made an update to its guidance for the end of 2025.
Gestamp anticipates a slight improvement in automotive business profitability compared with 2024. The supplier of components to the global automotive sector expects to generate free cash flow of €134 million ($154m), in line with 2024, and to improve its year-end leverage ratio to 1.6x net debt to Ebitda, it says in its latest report monitored by Kallanish.
“We are facing a complex market environment driven by regulatory uncertainties and volatility in production volumes,” says Gestamp chief executive Francisco Riberas. “Our focus is to maintain and strengthen our capital structure in an industry undergoing a profound transformation, improving profitability through rigorous operational efficiency and strict cost control, while optimising indebtedness to strengthen our balance sheet.”
Gestamp’s Q3 net revenue totalled €2.64 billion, down from €$2.78 billion in the same period last year.
The company saw third-quarter revenue improve solely in North America (+2% y-o-y) to €581 million and Eastern Europe (+7.5%) to €419.1m. In western Europe, Asia, and the South American (Mercosur) market, it was down by 7.4%, 13.7% and 16.5%, respectively, to €883.6m, €434.7m and €210.1m.
Gestamp’s nine-month net revenue totalled €8.48 billion, down 4.9% compared with €8.92 billion in January-September 2024.
Ebitda in Q3 reached €283.9m, down 3.3% on-year. Year-to-date through September, earnings before taxes were 1.1% weaker at €925.1m.
Todor Kirkov Bulgaria
European green steel market: a quiet period
While the green steel segment has been experiencing something of a quiet period – and attention remains focused on traditional steel products given the significant regulatory developments presented this week – timelines are moving forward, and policy commitments for lead-market support such as an official green ‘steel definition’ as promised in the European Steel and Metals Action Plan (ESMAP) shouldn’t be too far away.
European steel distribution association EUROMETAL announced its creation of a green steel working group this week, and Hydnum Steel’s greenfield renewables-powered direct-reduced iron to electric-arc furnace route steel plant (DRI-EAF) – to operate on green hydrogen inputs – announced a circular supply agreement with automotive OEM Gestamp.
As regards CBAM and its incoming definitive stage from January, market participants are becoming more consolidated in their expectations for CBAM’s benchmark and default values: around 1.3t and 0.2t CO2e/t for blast furnace and electric-arc furnace route steel, respectively, estimating relevant import costs at around EUR50-80/t.
McCloskey tracks the value of a single unit of reduced carbon among the EU’s domestic decarbonised offerings, calculated on the basis of all green HRC premia surveyed on week and currently standing at EUR47.62/t. McCloskey’s reduced carbon price remains largely consistent with the market’s CBAM cost estimations, soon in effect as the European steel market’s first product-level carbon cost.
Weekly green steel
| EUR/t | Term | 10-Oct | Change |
| Green Northwest Europe HRC premium (scopes 1-3 CO2 0.8t) | 80.00 | 0.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-3) | EX-WORKS | 660.00 | 5.00 |
| Green HRC premium (scopes 1-2 CO2 0.5t) | 80.00 | 0.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-2) | EX-WORKS | 660.00 | 5.00 |
| Green HRC reduced carbon price (scopes 1-3) | 47.62 | 1.61 |
Source: McCloskey by OPIS
Gestamp and Hydnum Steel join forces to produce clean automotive steel
Gestamp, a leading multinational in automotive components (Tier 1 supplier), and Hydnum Steel, a new-generation flat steel producer, have signed an agreement to use clean steel produced with renewable energy and green hydrogen for automotive manufacturing — a major milestone in the decarbonisation of the mobility and steel value chain.
Under the partnership, Gestamp’s recycling subsidiary Gescrap will supply high-quality scrap from its stamping operations to Hydnum Steel’s Puertollano plant, where it will be transformed into ultra-low CO₂ steel through electric arc furnaces powered by renewable energy and green hydrogen instead of natural gas. The resulting clean steel will be reincorporated into Gestamp’s production cycle, strengthening its circular economy strategy and supporting automakers’ transition toward the Net Zero Car.
Hydnum Steel’s upcoming Puertollano facility — the first of its kind in the Iberian Peninsula — will be a flagship project for industrial decarbonisation, combining green hydrogen, full scrap traceability, advanced digitalisation, and a zero-discharge water system. The process will reduce CO₂ emissions by up to 98% compared to conventional steelmaking.
According to Javier Imaz, Gestamp’s Chief Purchasing Officer, the agreement “marks another step forward in our efforts to decarbonize the automotive industry and strengthens our circular economy model.” Gilles Mirol, Chief Marketing Officer of Hydnum Steel, added that the collaboration “reflects the commitment of both companies to advancing a sustainable and efficient European industry.”