Cinkarna Celje Exceeded Business Expectations for the Period and Maintains Operational Stability in Challenging Market Conditions

In challenging conditions marked by weak industrial activity and uneven demand recovery, Cinkarna Celje remains focused on operational efficiency and concludes the first nine months of the year with a strong result. The company also expects to exceed the planned net profit for 2025, thus laying a solid foundation for 2026.

Operating profit increased by depreciation, or EBITDA, reached EUR 31.3 million, representing 19.8% of achieved sales. Compared to the previous year, EBITDA is up by 12.1%. Profit before tax is reported at EUR 20.9 million, exceeding the result for the same period last year by 12%.

Aleš Skok, President of the Management Board of Cinkarna Celje: “In the first nine months, by efficiently seizing opportunities, we exceeded expectations. We increased sales by 3% compared to the same period last year, mainly due to a focus on profitable markets, quality customers, and long-term partnerships. In the first nine months, we generated EUR 16.3 million in net profit, which is 11.7% higher than the EUR 14.6 million achieved in the comparable period of 2024. Considering developments in the global economy, the titanium dioxide pigment market, and especially the results of competitors in the titanium dioxide sector, we can conclude that the result is good and above expectations.”

The increase is mainly due to higher pigment sales to EU markets, which remain the company’s most important export markets, and especially higher sales prices of titanium dioxide pigment in the first half of the year. In addition to more effective management of market opportunities in key European markets, the company continued to implement measures to increase business agility, efficiency, and long-term competitiveness. In the first three quarters of 2025, the company allocated EUR 12.5 million for investments and equipment. Investments are primarily aimed at reducing operating costs, ensuring a profitable volume of production, achieving higher quality, regulatory compliance, and energy sustainability.

“We are implementing projects in line with our business and sustainability strategy. Recently, we carried out a major overhaul in sulfuric acid production, mainly to adapt the process for the installation of a steam turbine, which will follow next year. The turbine will be used for cogeneration of electricity from steam produced during sulfur combustion. It will enable in-house electricity production and a significant reduction in Scope 2 CO2 emissions. To strengthen dialogue with local communities, we have formally established the advisory channel Sosvet,” said Member of the Management Board – Technical Director, Nikolaja Podgoršek Selič.

As a strongly export-oriented company, Cinkarna Celje cannot escape certain broader economic cycles and uncertainties. High energy and raw material costs continue to weaken the competitiveness of European industry. Anti-dumping measures have so far not provided the expected protection against price pressures, as they are neither strict enough nor comprehensive enough to sufficiently protect the market. “However, we are adapting and building our business model so that even with reduced demand, we maintain stable and development-oriented operations, as well as all key strategic investment plans,” added Skok.

Assessment of 2025 Performance and Plan for 2026

The titanium dioxide market remains under pressure from pricing and excess capacity, despite the introduction of permanent anti-dumping measures. Despite new temporary or permanent closures of additional production facilities in the Western world, the industry is currently facing a pronounced surplus of capacity, mainly of Chinese origin, which presents a structural challenge, especially during periods of lower demand. By the end of the year and at the beginning of 2026, increased pressure on prices and consequently reduced margins are expected; however, it is estimated that the planned net profit for 2025, mainly due to better results in the first part of the year, will be exceeded and is estimated at EUR 18.0 million. Net sales revenue is estimated at EUR 197.7 million.

These conditions mean that demand remains subdued, as key end markets operate below long-term averages, and recovery is gradual and uneven.

Based on current market conditions, industry forecasts, and projections of global macroeconomic conditions, the company estimates that the net operating result next year will be lower than this year. In 2026, in line with expectations and industry developments, they plan EUR 194.3 million in sales revenue, and the net profit operating result for 2026 is estimated at EUR 8.0 million.

The lower net profit will be the result of a lower average selling price of the main product than will be achieved in 2025. The expected share of operating profit increased by depreciation in revenue (EBITDA margin) reaches 13%.

Despite less favorable conditions, Cinkarna Celje has planned EUR 17.2 million in investments to support strategic goals. Most will be allocated, in line with the sustainability strategy, to renewable energy projects such as the installation of a steam turbine and investment in battery storage. They will also continue multi-year investments in production processes.

Nikolaja Podgoršek Selič, Member of the Management Board – Technical Director, summarizes: “There will be no shortage of challenges in the future. But we build our operations on knowledge, cooperation, and the dedication of employees, who are the heart of the company. With numerous measures, we will optimize costs, reduce losses, and develop solutions for a broader range and better quality of our products. By implementing a broad-based knowledge transfer project from older to younger generations, we ensure the least noticeable impact of the retirement of a larger number of our long-term colleagues.”

This week, there was also a change in the Management Board at Cinkarna Celje. The Supervisory Board, at the proposal of the Works Council, appointed Dr Nika Veronovski as a Member of the Management Board – Labour Director at its session on 10 November 2025. Dr Veronovski has been employed at Cinkarna Celje for over 15 years. In this position, Dr Veronovski succeeds Mr. Filip Koželnik, who remains part of Cinkarna Celje and will focus experience on investor relations and further strengthening trust with stakeholders.