Afarak Group SE
Sector unknown·AFAGR · Nasdaq Helsinki·Fiscal year to 31/12/2025
Exposure profile
Derived from what the company itself writes. Empty directions mean the report doesn't mention themes of that type.
In their own words
Grouped by theme, from the management review in the annual report. A · The company itself is a verbatim quote, B · From the report is without a verified quote.
Steel
Raw materials and inputs
DriverNegative impact: weakens
“A setback in Cr Ore prices and some unexpected delays caused a below expectation result in our South African Chrome Ore operation Guy Konsbruck CEO Our commitment Afarak vows to deliver its contribution to environmental and social sustainability through its production processes.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“4) Dependence on market prices Dependence on market prices for chrome ore and ferrochrome represents a key risk. Although Afarak supplies itself with the most important raw material (chrome ore) for ferrochrome production, thereby reducing its dependence on raw material prices, the volatility of market prices for its own products (chrome ore and ferrochrome) remains crucial for profitability and competitiveness. To mitigate its exposure to volatility in chrome ore and ferrochrome market prices, Afarak pursues a vertically integrated operating model.”
Annual report 2025A · The company itself
DriverPositive impact: strengthens
“In parallel, Afarak is pursuing expansion of chrome ore production in South Africa, supported by investment decisions to increase chrome ore concentrate output. By strengthening upstream capacity, the company enhances its ability to secure feedstock for ferrochrome production and to respond flexibly to rising market demand.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Therefore, chrome ore and ferrochrome are very much correlated to the developments of the stainless-steel industry. 2025 Market overview The expected recovery in the stainless steel market did not materialize in the second half of 2025.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Chrome ore prices decreased in the second half of the year, resulting also in lower margins due to subdued stainless steel demand.”
Annual report 2025A · The company itself
Market
“THE FERROCHROME AND CHROME ORE MARKET Afarak Group operates primarily in the chrome market. Globally, most of the chrome ore is used in metallurgical applications. However, chrome ore is also used, though to a much lesser extent, in refractories, as foundry sands and as a chemical grade as shown below. Afarak produces ferrochrome which is the main type of chrome used in metallurgical applications, in turn mainly driven by the demand for stainless steel.”
Annual report 2025A · The company itself
Market
“GROUP OPERATIONAL REVIEW Operationally, 2025 presented higher sales and lower production for the Group. Sales The Group sales of processed material increased by 30.6% and stood at 28,407 (2024: 21,759) tonnes.”
Annual report 2025A · The company itself
Market
“Sales Speciality Alloys Processed material sold increased by 30.6%, to 28,407 (2024: 21,759) tonnes. Financial performance The increase in sales resulted in a higher EBITDA for the year to EUR 4.3 (2024:1.7) million, and EBIT of EUR 2.3 (2024:-0.4) million.”
Annual report 2025A · The company itself
Market
“The business produces chrome ore for sale to global markets.”
Annual report 2025A · The company itself
Chains in: Wind power strengthens
Solar power
Technology
DriverPositive impact: strengthens
“2) Increased demand for products for the generation of clean energy technologies There is increasing demand for raw materials such as chrome ore and low-carbon ferrochrome for clear energy technologies and essential applications in the energy transition, electromobility and other green technologies.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“A key initiative is the development of its own solar power generation capacity in South Africa. At the Vlakpoort site, the planned commissioning of a new wash plant in combination with a solar energy installation is intended to reduce reliance on the national electricity grid, mitigate exposure to power supply constraints and lower long-term energy costs and emissions intensity.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Concrete steps are already underway in Germany, where a photovoltaic system installed on the crushing hall building generated approximately 700 MWh of electricity by the end of 2025, alongside measures such as LED lighting conversion (approximately 21,000 KWh/year savings). The company is evaluating the feasibility of additional solar energy projects at selected sites, with the objective of increasing the share of self-generated renewable electricity and reducing structural reliance on external grid supply.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Additionally, the Group has commissioned a 1.5 MWp solar plant in South Africa with 3.0 MWh battery storage, which is expected to replace just under 1,000 MWh of grid electricity annually.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Afarak leverages energy efficiency improvements, production optimisation and its own energy generation as strategic tools to enhance its cost structure, margin stability and competitiveness.”
Annual report 2025A · The company itself
Batteries and energy storage
Technology
DriverPositive impact: strengthens
“2) Increased demand for products for the generation of clean energy technologies There is increasing demand for raw materials such as chrome ore and low-carbon ferrochrome for clear energy technologies and essential applications in the energy transition, electromobility and other green technologies.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Additionally, the Group has commissioned a 1.5 MWp solar plant in South Africa with 3.0 MWh battery storage, which is expected to replace just under 1,000 MWh of grid electricity annually.”
Annual report 2025A · The company itself
Energy efficiency
Technology
StrategyPositive impact: strengthens
“At the operational level, Afarak is implementing ongoing optimisation of smelting processes at the German site. Given that ferrochrome production is highly electricity-intensive, incremental improvements in furnace efficiency and process control can materially reduce specific energy consumption per tonne of output, thereby lowering sensitivity to electricity price fluctuations.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“3) Lower material costs thanks to improved resource efficiency A continuous increase in the efficiency of production processes leads to positive effects in the sustainability chain. Increasing efficiency can lead to a reduction in electricity consumption and optimal use of raw materials, resulting in lower material costs for Afarak. Afarak leverages efficiency improvements in production and raw material utilisation, as well as vertical integration, to stabilise and reduce material costs over the long term.”
Annual report 2025A · The company itself
Chains in: Carbon tax and ETS prices strengthens, EU climate and energy policy strengthens
Labour and wages
Raw materials and inputs
StrategyPositive impact: strengthens
“Our most significant impact on local host communities lies in providing direct and indirect employment.”
Annual report 2025A · The company itself
Market
“Human resources At the end of the year 2025, Afarak had 626 (602) employees.”
Annual report 2025A · The company itself
Automotive
End markets
Market
“SUSTAINABILITY, HEALTH AND SAFETY AT AFARAK GROUP Afarak Group extracts, processes, markets and trades specialised metals and is trusted by a highly diversified customer base that covers the aviation, nuclear, oil & gas and automotive industries.”
Annual report 2025A · The company itself
Aviation and travel
End markets
Market
“SUSTAINABILITY, HEALTH AND SAFETY AT AFARAK GROUP Afarak Group extracts, processes, markets and trades specialised metals and is trusted by a highly diversified customer base that covers the aviation, nuclear, oil & gas and automotive industries.”
Annual report 2025A · The company itself
Chains in: Fuel strengthens, Pandemics and outbreaks weakens
Circular economy and recycling
Regulation
StrategyPositive impact: strengthens
“A central lever is the utilisation of FeCr slag generated during ferrochrome production. Rather than treating slag solely as waste, Afarak processes it for use as a secondary material, for example in road construction. This approach reintegrates by-products into the economic cycle, reduces disposal requirements and can generate incremental income streams.”
Annual report 2025A · The company itself
Chains in: EU climate and energy policy strengthens
Oil
Raw materials and inputs
Market
“SUSTAINABILITY, HEALTH AND SAFETY AT AFARAK GROUP Afarak Group extracts, processes, markets and trades specialised metals and is trusted by a highly diversified customer base that covers the aviation, nuclear, oil & gas and automotive industries.”
Annual report 2025A · The company itself
Chains out: this strengthens Plastics and polymers
Electricity
Raw materials and inputs
DriverNegative impact: weakens
“3) Dependence on energy suppliers Ferrochrome production in Germany is the most energy-intensive process in the company and requires the operation of smelting furnaces with high electricity consumption. This location is particularly dependent on German electricity market prices on the futures and spot market. Fluctuations in electricity prices can have a significant impact on production costs and profitability.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Europe is disadvantaged by high energy cost and disrupted flows created by the 50% USA tariff implemented mid-2025.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“In South Africa the majority of the electricity supply, price and availability are controlled by one entity, Eskom. Increased electricity prices and/or reduced, or uncertain electricity supply, or allocation may negatively impact Afarak's current operations, which could have an impact on the Group's financial performance.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“2025 Developments Afarak's processing operations in Germany and South African mines are intensive users of energy, primarily electricity. Fuel and energy prices globally have been characterised by volatility and cost inflation.”
Annual report 2025A · The company itself
Chains in: Data centres strengthens, Electrification strengthens
Chains out: this strengthens Power grid expansion
USD vs DKK/EUR
Macro
DriverNegative impact: weakens
“This was further impacted by the weakening of the US Dollar against the Euro, which reduced the Euro-equivalent value of USD-denominated revenues.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Continued pricing pressure and a weaker US dollar negatively impacted margins in the LC ferrochrome business despite ongoing cost-optimization measures.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
Chains out: this mixed effect United States
Tariffs and trade policy
Macro
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Europe is disadvantaged by high energy cost and disrupted flows created by the 50% USA tariff implemented mid-2025.”
Annual report 2025A · The company itself
Chains in: Geopolitical uncertainty strengthens
Chains out: this weakens Global trade volumes
Carbon tax and ETS prices
Regulation
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
Chains out: this weakens Shipping and logistics, strengthens Energy efficiency, weakens Cement and building materials
Global trade volumes
Macro
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
Chains in: Tariffs and trade policy weakens, Geopolitical uncertainty weakens, Business cycle and GDP growth strengthens
Chains out: this strengthens Shipping and logistics
Other currencies
Macro
DriverNegative impact: weakens
“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.”
Annual report 2025A · The company itself
Water
Raw materials and inputs
DriverNegative impact: weakens
“These guidelines are implemented through technologies for the reuse and recycling of process water. At Afarak's sites, this is achieved through closed-loop water systems, which significantly reduce both fresh water consumption and wastewater discharges. Afarak also attaches great importance to minimizing water pollution. The company's own wastewater treatment plants and optimized wastewater treatment processes significantly reduce the discharge of pollutants into water resources.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“There is a high level of water stress at the mine sites in South Africa and Turkey, as these regions are characterized by limited water availability. This requires particularly efficient use of water in order to minimize the impact on local water resources.”
Annual report 2025A · The company itself
Climate change and extreme weather
Macro
DriverNegative impact: weakens
“There is a high level of water stress at the mine sites in South Africa and Turkey, as these regions are characterized by limited water availability. This requires particularly efficient use of water in order to minimize the impact on local water resources.”
Annual report 2025A · The company itself
Chains out: this weakens Agriculture and food production
Wind power
Technology
DriverPositive impact: strengthens
“2) Increased demand for products for the generation of clean energy technologies There is increasing demand for raw materials such as chrome ore and low-carbon ferrochrome for clear energy technologies and essential applications in the energy transition, electromobility and other green technologies.”
Annual report 2025A · The company itself
Chains in: Interest rates weakens, Energy security strengthens
Chains out: this strengthens Steel, strengthens Rare earths and critical raw materials, strengthens Renewables auctions and subsidies, strengthens Power grid expansion
Asia and emerging markets
Geography
Geography
“Site-specific requirements Responsibility for the use of water and marine resources lies with the Group's sites in Germany, Turkey and South Africa. These operate independently in order to take account of the varying legal conditions and environmental protection requirements in the individual countries.”
Annual report 2025A · The company itself
Geography
“The mining operations at TMS remained consistent, with a 11.2% increase over last year.”
Annual report 2025A · The company itself
Europe
Geography
Geography
“Site-specific requirements Responsibility for the use of water and marine resources lies with the Group's sites in Germany, Turkey and South Africa. These operate independently in order to take account of the varying legal conditions and environmental protection requirements in the individual countries.”
Annual report 2025A · The company itself
Geography
“Processing production 27,626 mt (2024: 22,963mt) Sales of processed material 28,407mt (2024: 21,759mt) Personnel 512 (2024: 479) Production Total production levels during 2025 increased by 19.9% to 105,432 (2024: 87,907) tonnes.”
Annual report 2025A · The company itself
Competitors mentioned in the report
No named competitors in the report.
Financial figures
| Revenue latest fiscal year | 0 bn EUR |
| Revenue growth vs. the year before, same method | 9.8 % |
| EBITDA reported by the company | -0 bn EUR |
| Net debt debt incl. leasing minus cash | N/A |
| Diluted EPS per share | -0.03 EUR |
Source: annual report (ESEF) A. See the report
Criteria
| Profit | ✗ |
| Growing | ✓ |
| Healthy balance sheet | N/A |
Only the criteria that can be computed from financial statements on this page. The remaining criteria (such as price and dividend) need a share price and are in the analysis.
Figures are in the report's currency (EUR), not converted to DKK. Quotes are shown as the company's own words in the report's original language.