AMAG raises 2026 EBITDA guidance after H1 profit jumps 74%

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Austrian aluminium producer AMAG Austria Metall AG has upgraded its full-year earnings outlook after delivering a strong first half of 2026, supported by higher aluminium prices, record shipments from its Rolling Division and a successful production ramp-up at its Ranshofen facility. 

While geopolitical tensions and working capital requirements continued to weigh on cash flow, stronger operational performance across the business helped offset market uncertainties and reinforced the company's confidence for the remainder of the year.

AMAG reported a solid improvement across its key financial indicators during the first six months of 2026, reflecting stronger pricing conditions and improved operational execution.

• Revenue: EUR 850.7 million (USD 978.3 million), up 8.2 per cent year on year
• EBITDA: EUR 101.1 million (USD 116.3 million), up 25.4 per cent
• Net income after taxes: EUR 40.7 million (USD 46.8 million), up 73.7 per cent
• EBITDA margin: Improved to 11.8 per cent from 10.2 per cent
• Free cash flow: Negative EUR 76 million (USD 87.4 million)
• Net financial debt: EUR 186 million (USD 213.9 million), down from EUR 265 million (USD 304.8 million) a year earlier
• Rolling Division shipments: 117,000 tonnes, up 8 per cent
• Group shipments: Approximately 220,000 tonnes
• 2026 EBITDA guidance: Raised to EUR 170-190 million (USD 195.5-218.5 million)

The improved performance was driven by favourable London Metal Exchange (LME) aluminium prices, lower alumina costs and a stronger sales mix across high-value aluminium applications. 

At the same time, AMAG's Canadian Alouette smelter benefited from supportive market conditions, while productivity gains at Ranshofen enabled the Rolling Division to deliver its highest quarterly shipment volume to date.

Reflecting the stronger start to the year, AMAG CEO Victor Breguncci said that the company has raised its full-year 2026 EBITDA guidance to EUR 170 million-190 million (USD 195.5 million-218.5 million) from its previous forecast of EUR 150 million-180 million (USD 172.5 million-207.0 million), citing continued momentum in its rolling business alongside favourable aluminium market conditions.

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How did stronger aluminium markets drive earnings?

Higher aluminium prices remained one of the biggest contributors to AMAG's improved financial performance during the first half, as stronger LME pricing combined with a favourable product mix and lower alumina costs supported profitability across the business.

Operational improvements also played a significant role. The successful ramp-up of the Ranshofen rolling mills enhanced production efficiency, while the Canadian Alouette smelter continued to operate under favourable market conditions, providing additional support to earnings. Together, these factors enabled all three operating divisions to report positive performances during the period.

Chief Executive Officer Victor Breguncci described the first-half performance as an important milestone for the company, stating, "We have important positive information to share. Revenue 8.2 per cent up versus first half of last year, EUR 850 million, driven for sure by growth in the Rolling Division, also in the LME prices."

He added that EBITDA surpassed EUR 100 million for the first time during the reporting period, "with a very strong operational performance in Ranshofen and a very positive market environment for our Canadian smelter in Alouette." 

Rolling Division delivers record quarter

The Rolling Division emerged as AMAG's strongest growth engine during the first half, delivering record shipment volumes as demand strengthened across several premium aluminium markets.

Commenting on the division's performance, Breguncci said, "Q2 was a record quarter in shipments. We achieved 62,000 tonnes in this quarter in the segment Rolling, driven by strong performance in our mill productivity, while still maintaining quality delivery performance at a strong level."

Automotive applications remained a key growth area, while demand for heat exchanger products continued to benefit from expanding data centre cooling requirements. Aerospace deliveries also improved as aircraft manufacturers increased production rates, and industrial applications showed early signs of recovery across Europe.

He noted that AMAG's strategic focus on higher-value aluminium products had enabled the company to capture additional market share, particularly as supply bottlenecks in North America created fresh opportunities for European producers.

Cash flow remains under pressure despite stronger profitability

Despite the significant improvement in earnings, AMAG's cash generation remained under pressure during the first half as higher aluminium prices and increased production volumes required additional working capital.

Free cash flow stood at negative EUR 76 million (USD 87.4 million), compared with negative EUR 37 million (USD 42.6 million) in the corresponding period last year, while operating cash flow was negative EUR 57 million (USD 65.6 million). 

Management attributed the weaker cash performance primarily to inventory valuation effects linked to rising aluminium prices and the working capital required to support the ongoing ramp-up at Ranshofen.

Addressing investor concerns during the earnings call, Chief Financial Officer Claudia Trampitsch said the company had anticipated the temporary cash flow impact.

"I exactly know where it's coming from. It's something that we had calculated before. We were prepared for that," she remarked.

AMAG enters H2 2026 with stronger momentum

Management expects the Rolling Division to remain the primary earnings driver during the second half, supported by a solid order book, continued gains in automotive, aerospace and heat exchanger applications, and sustained productivity improvements at the Ranshofen rolling mills.

The Metal Division is also expected to benefit from stable production at the Alouette smelter alongside favourable primary aluminium prices and lower alumina costs, while the Casting Division is anticipated to maintain gradual improvements despite ongoing challenges across European manufacturing markets.

However, AMAG acknowledged that geopolitical tensions, trade policies, energy prices and broader macroeconomic uncertainty remain key risks for the remainder of the year. Management also highlighted continued weakness in parts of the European automotive market, although the company believes its focus on aluminium-intensive vehicle platforms and long-standing customer relationships will continue to support growth. 

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