The profit of Russia’s "Severstal" plunged by 61% in nine months, intelligence reports
Kyiv • UNN
Severstal’s net profit decreased to $232.5 million amid falling prices and demand. The company is cutting investment and is not paying dividends.
During January–September 2026, the net profit of the Russian PJSC "Severstal" decreased by 61% compared with the same period last year, to $232.5 million. This was reported by the Foreign Intelligence Service of Ukraine, UNN reports.
Details
According to intelligence data, in the third quarter the company's revenue fell by 3%, to $2.1 billion, while sales of steel products declined by 9%, to 2.61 million tonnes.
In January–September, average steel prices in Russia fell by 6%. Demand did not recover after declining by approximately 14% in 2025. The company also expects seasonal weakening of demand in the fourth quarter. "Severstal" is cutting investment and is not paying dividends. In the first nine months, capital expenditures decreased by 39%, to $930 million, while in the third quarter they fell by 42%, to $280 million. The company declined to pay dividends for the first nine months because of negative free cash flow. Dividends have not been paid since the fourth quarter of 2024. According to the company's forecast, free cash flow will remain negative for the full year 2026
They added that the situation at "Severstal" shows how weak domestic demand and falling prices are hitting Russian industry. Even large producers are forced to cut investment and preserve funds instead of developing production.
To remind you
The net profit of "PhosAgro," one of Russia's largest fertilizer producers, fell by 37% in the third quarter of 2026, to $156 million, while production costs and debt are rising.