Celsa reports US$21M Q1 profit as restructured recycled-content steelmaker turns corner

SPAIN – Celsa Group has reported a positive net result of €18 million (approximately US$21 million) in Q1 2026, marking the completion of a 28-month transformation from profound restructuring to a profitable industrial model.

The Barcelona-based company, which operates electric arc furnace mills in Spain, France, and Poland, has been involved in a restructuring process since 2023 when a consortium of its creditors filed to take over operations from the previous owners. 

As part of that restructuring, the company sold EAF mills and metals recycling facilities in Denmark, Finland, Norway, Sweden, and the United Kingdom to Czech-based Sev.en Global Investments.

A Turnaround Built on Four Pillars

Board chair Rafael Villaseca and CEO Jordi Cazorla attribute the company’s very positive performance to the successful execution of four strategic priorities: improving operating performance, reducing debt and its cost, strengthening commitment to sustainability and circularity, and implementing best-in-class corporate governance. 

Net debt has been reduced by more than €2.54 billion (approximately US$2.97 billion), 70% below the pre-restructuring level.

In what the company describes as a “challenging environment” for the European Union in 2025, Celsa nonetheless increased its sales volume by 3.2% compared with 2024. 

On a volume basis, Celsa sold 4.346 million metric tonnes of steel last year compared with 4.211 million metric tonnes the prior year. 

The company continued to invest in its operations last year, putting €183 million (approximately US$213 million) into its plants.

Why the EAF Model Matters for Recycling

Electric arc furnace steelmaking uses recycled ferrous scrap as its primary feedstock, unlike traditional integrated mills that rely on iron ore and coal. 

This model requires reliable access to scrap and efficient recycling operations. 

For the recycling industry, Celsa’s turnaround demonstrates that recycled-content manufacturing can be profitable when operational discipline, debt reduction, and strategic divestments align. 

The company now describes itself as being on “a trajectory of steady EBITDA growth.”

When a Restructuring Becomes a Comeback

Twenty-eight months ago, Celsa was fighting for survival. Today, it is profitable, debt-reduced, and investing €183 million in its plants. 

The difference is not just financial engineering, it is operational execution. 

For Europe’s recycling sector, Celsa’s Q1 results prove that EAF steelmaking, when run well, is not just sustainable; it is a competitive advantage.

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