Klöckner narrows Q1 losses, expects Worthington deal to close by year's end

Klöckner & Co.’s North American business attributed its first-quarter loss to reduced shipments, a knock-on effect of its divestment of eight US-based distribution sites at the end of 2025. 

The Düsseldorf-based company posted a Q1’26 net loss of €4 million (US$4.69 million), an 85.7% improvement from its prior-year quarterly loss of €28 million.

The Kloeckner Metals America (KMA) segment posted sales of €840 million, reflecting a decrease of 15% compared to €987 million in Q1’25. KMA shipments slid to 664,000 tons from 757,000 tons in the prior-year quarter.  

During an earnings presentation, KMA’s Chief Executive John Ganem noted that first-quarter shipments decreased due to inclement weather conditions.  

“While some extremely challenging weather disruptions impacted our shipments early in 2026, we continue to expect a decent recovery in this year with North American real steel demand increasing between 1% and 2% compared to the prior year,” said Ganem. 

The executive also pointed out that ongoing conflict in Iran created uncertain conditions for the business. 

“There remain significant uncertainty and some downside risks related to the current conflict in the Middle East and the continued unpredictable trade policy shifts that can negatively impact the outlook,” he said.  

Ganem said key drivers of steel demand in 2026 will include the development of data centers and US electrical grid modernization and expansion projects. He highlighted large project awards the company had secured, stating, “Energy will continue to be the strongest steel-consuming segment this year. Power transmission will remain extremely strong in 2026, generating growth of greater than 15% year over year after achieving a similar result last year.” 

Klöckner Group’s CEO, Guido Kerkhoff, expects the voluntary public takeover of Worthington Steel to close in the second half of this year.  

“On March 27, 2026, Worthington Steel informed the management board of Klöckner & Co. that it intends to enter into a domination and profit and loss transfer agreement between Worthington Steel GmbH as the controlling company and Klöckner & Co SE as the controlled company,” said Kerkhoff.  

He added, “Strategically, this takeover marks a new chapter in Klöckner & Co.’s corporate history and fully aligns with our strategic focus on higher value-added products and services across North America and Europe. Closing of the transaction remains subject to regulatory approvals and is currently expected to take place in the second half of 2026.”