AMAG Austria Metall AG, the leading player in Austria's aluminium industry, has begun to feel the pinch of the US tariffs in its Q2 2025 earnings—though the impact so far remains modest. However, the full brunt is expected to hit in the second half of the year. The company had entered 2025 on a strong footing, managing to weather the initial 25 per cent tariff shock. But that resilience was soon tested, as the tariff rate doubled to 50 per cent effective June 4, marking a clear turning point in AMAG's performance trajectory. It's often said that all's well that ends well, but for AMAG, a strong start may not guarantee a smooth finish.
In Q2 2025, AMAG's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at EUR 80.6 million, marking a drop of 15 per cent Y-o-Y from EUR 95.3 million.
AMAG explained that in the metal division, earnings are mainly determined by production volumes in Canada and the price level for aluminium, premiums, and raw materials. Global US tariffs are one of the key factors for the negative impact on earnings. Going ahead, the loss of tariff exemptions from Canada will keep reflecting in the fallouts in earnings of the Metal Division.
Similarly, casting division will further face repercussions of weak environment in the automotive industry, and rolling division will face a hit due to lower shipments. AMAG's shipments in Q2 were 109,600 tonnes compared to 110,000 tonnes. However, the total shipments in six months stood year-on-year higher at 220,400 tonnes compared to 214,100 tonnes.
Dr Helmut Kaufmann, Chief Executive Officer of AMAG, said: "Capacity utilisation has been maintained at a stable level so far, but earnings losses due to higher personnel and energy costs as well as US tariffs cannot be offset in the short term. It is therefore urgently necessary to reach a viable agreement with the US government on future trade conditions, to improve conditions in Austria as a business location and for the collective bargaining negotiators to show realism in the autumn round of talks."
Net income after taxes also slumped over the year from EUR 20.1 million to EUR 7.2 million, reflecting a downfall of 64.1 per cent. Net income in the entire first half of the year amounted to EUR 23.4 million, down by 29.9 per cent from EUR 33.4 million.
Only revenues grew Y-o-Y by 3.5 per cent, reaching EUR 384.8 million versus EUR 371.9 million. Revenues in six months came in at EUR 786.2 million, gaining 11.1 per cent from EUR 707.7 million.
The company's cash flow from operating activities remained steady Y-o-Y, amounting to EUR 76.2 million versus EUR 75.7 million.
For the remaining 2025, Adjustment of the EBITDA is expected to range between EUR 110 million and EUR 130 million as a result of changing conditions.
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