Severstal skips nine-month dividend even as third-quarter profit climbs 17%

what happened

Russian steelmaker Severstal has decided against a dividend for the first nine months of this year, even though its third-quarter earnings and cash inflow improved. The company said it expects cash generation to remain strained through year-end. Reuters reported the decision on Tuesday.

Third-quarter net profit rose 17% year on year to 15.2 billion roubles, about $183 million. EBITDA climbed 13% to 40 billion roubles, supported by a slight revival in domestic steel demand and prices and by cost cuts made in the first half. Revenue, however, slipped 3% to 173.5 billion roubles as steel shipments fell 9% to 2.61 million tonnes, partly offset by higher average selling prices.

Free cash flow reached 42.6 billion roubles in the quarter but stood at minus 27.6 billion for the nine months, which is why the board chose not to pay out. Russian steel consumption edged up 1% over nine months. For 2026 the company now expects demand to fall about 0.5%, versus its earlier forecast of a 7% drop. Exchange rate: $1 = 82.8794 roubles.

why it matters

For investors, the decision signals that even with better margins the company does not yet see sustainable free cash flow, which limits dividend support for the shares. A milder demand outlook trims risk for the sector, but the key question remains whether cash generation recovers before year-end.

market impact

Severstal shares: no dividend payout reduces near-term income return for shareholders

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