Afarak Group: FINANCIAL STATEMENTS RELEASE 2025

09:00 London, 11:00 Helsinki, 27 February 2026 – Afarak Group SE (“Afarak” or “the Company”) (LSE: AFRK, NASDAQ: AFAGR)

FINANCIAL STATEMENTS RELEASE 2025

SECOND HALF 2025 HIGHLIGHTS

• Revenue for the second half of 2025 increased to EUR 64.2 (H2/2024: 57.2) million;
• Speciality Alloys processed material sold increased by 32.7%, to 13,053 (H2/2024: 9,837) tonnes;
• Tonnage mined decreased by 43%, to 101,847 (H2/2024: 177,972) tonnes.
• Group’s EBITDA decreased to EUR -7.1 (H2/2024: -1.6) million and the EBITDA margin stood at -11.1% (H2/2024: -2.9%);
• EBIT was EUR –8.5 (H2/2024: -3.2) million and the EBIT margin stood at -13.3% (H2/2024: -5.6%);
• Loss for the period totalled EUR -11.4 (H2/2024: -7.8) million;
• Cash flow from operations during H2 2025 was EUR 2.7 (H2/2024: -0.9) million;
• The interest-bearing debt of the Group reduced to EUR 3.4 (31 December 2024: 2.6) (30 June 2025: 4.9) million;
• Cash and cash equivalents at 31 December totalled EUR 7.3 (31 December 2024: 4.0) (30 June 2025: 5.8) million.

FULL YEAR 2025 HIGHLIGHTS

• The Group revenue was higher compared to prior year EUR 141.3 (FY/2024: 128.6) million;
• Speciality Alloys Processed material sold increased by30.6%, to 28,407 (FY/2024: 21,759) tonnes;
• Tonnage mined decreased by 31.3%, to 251,257 (FY/2024: 365,929) tonnes. The Zeerust mine in South Africa was disposed of mid-year.
• EBITDA during the year decreased to EUR -0.2 (FY/2024: 2.6) million. EBIT stood at EUR -2.6 (FY/2024: -0.1) million;
• Loss for the full year 2025 totalled EUR -8.9 (FY/2024: -7.2) million.

MARKET SENTIMENT FOR Q1/2026

Our customer base is suffering

For the fourth year in a row the EU steel industry has contracted in 2025, after a brief increase in Q1. The share of low priced imported steel in the EU is at a record high of 27%. In the case of stainless steel the share is 25%.
The output of steel in the EU has dropped by 3.4% year on year. Modest recovery is projected for 2026, but high uncertainty is expected, given:
Global overcapacity of 680 M mt of steel worldwide. Europe is disadvantaged by high energy cost and disrupted flows created by the 50% USA tariff implemented mid-2025.

Our margins are still under pressure
While the market price for Lc Fe-Cr started to show more sustained improvements in the last quarter 2025, the falling USD exchange rate has wiped out most of the positive effect. Low Carbon Ferrochrome continues to be a USD commodity.
CBAM  and new EU safeguard measures have started to show some positive effects early 2026, but the cost of energy and the rise of the carbon compliance cost is going to continue weighing heavily on European producers.

CEO GUY KONSBRUCK

After a brief moderate peak in Q1, the business environment deteriorated again in 2025. The stainless-steel demand was historically low, especially in Europe. Demand for low carbon ferro-chrome suffered from this fact.
We succeeded to substantially increase our sales, but the generated EBITDA of -0.2 M€ shows that the price pressure from low-cost imports (India, Kazakhstan, Russia and China) weighed heavily on our margins.
A setback in Cr Ore prices and some unexpected delays caused a below expectation result in our South African Chrome Ore operation

Helsinki, February 27, 2026

Afarak Group SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com  

Financial reports and other investor information are available on the Company’s website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com

Attachment

• Afarak_Release_FY 2025_ENG