Kloeckner Metals Americas delivers record Q4 shipments as Worthington bid keeps advancing

Klöckner & Co.’s North American business closed 2025 with its strongest fourth quarter on record, even as pricing and currency effects weighed on revenue. The update comes as Worthington Steel moves closer to securing control of the German distributor through an ongoing public takeover bid.

Group results

All told, “Klöckner & Co held its ground despite the challenging market conditions in fiscal year 2025,” the company said in its quarterly earnings report.

The Düsseldorf-based company reported slightly higher shipments for fiscal 2025, rising to 4.53 million tons from 4.45 million tons a year earlier, supported primarily by market expansion in the US.

Group sales edged down to €6.4 billion from €6.6 billion, driven by lower average prices and negative currency effects. Net income improved significantly, narrowing to a €53 million loss from a €176 million loss in 2024.

Management said the Americas segment’s strong performance more than offset weaker results in Europe, despite tariff- and trade-related uncertainty and ongoing foreign exchange headwinds.

Americas segment

Kloeckner Metals America (KMA) reported a 1.6% year-over-year (y/y) increase in quarterly shipments to 676,000 tons, continuing the steady volume gains seen throughout 2025. Management said Q4 marked the highest fourth-quarter shipment level in the company’s history, underscoring the success of its North American growth strategy.

Full-year shipments for the Americas reached 4.53 million tons, supported by market share gains and expanded processing capabilities. However, segment sales fell 2.8% y/y to €840 million, reflecting lower average steel prices and adverse foreign-exchange movements. Segment EBITDA declined by €23 million to €19 million.

N. America capacity expansions

KMA highlighted several ongoing investments aimed at strengthening its higher-value processing and service center footprint.

In Columbus, Miss., a new aluminum flat-rolled processing facility is under construction, with building completion expected in late Q4’26 and equipment start-up in Q2’27.

In Paton, Iowa, the company started a new heavy fabrication operation. This came following the lease of the former Bauer Built Manufacturing site and the integration of its workforce.

A new Schuler laser blanking line is scheduled for commissioning in Q2’26 in Queretaro, Mexico. This is to meet rising automotive demand for aluminum blanks.

Outlook

KMA CEO John Ganem said the North American region is positioned for a “decent recovery” in 2026, with real steel demand expected to rise 1-2% after a challenging 2025.

“Of course, there remains significant uncertainty related to the current conflict in the Middle East and continued unpredictable trade policy that can impact the outlook,” he cautioned, noting, “Also critical for North America will be a positive outcome to the USMCA review, which is now underway.”

“While risks and uncertainty remain, we are firmly optimistic when it comes to both steel demand and price fundamentals in 2026. Market cycles are setting up somewhat more favorably than the past two years,” he added.

Ganem highlighted that Kloeckner’s streamlined contractual portfolio “mitigates exposure to market price volatility,” supporting pricing stability into Q2 and likely Q3.

With the USMCA up for review this year, and the ongoing conflict in Iran, “It’s all a bit too early to really say how the second half will look like,” added group CEO Guido Kerkhoff.

Worthington Steel takeover bid nears control threshold

Worthington Steel’s voluntary public takeover bid for Klöckner & Co. advanced further in March. As of March 10, Worthington had secured 56.92% of outstanding shares, including acceptances and direct holdings. The companies had not responded to SMU requests for an updated figure for this story as of publication. The revised minimum acceptance threshold is 57.5%, and the offer period has been extended to March 26.

Worthington is offering €11.00 per share in cash. Klöckner’s Management Board and Supervisory Board reiterated their support for the amended offer, calling it “in the best interests of the company and its stakeholders.”

Kerkhoff said the planned business combination “unlocks new strategic opportunities,” citing complementary strengths and a shared focus on higher-value-added products and services across North America and Europe.

Klöckner & Co. was trading at €11.92 per share at the close of business on Monday, March 16.