Sija's business is improving, but the loss remains high.

Boeing has reported losses exceeding initial expectations, with the Air Force One program significantly impacting its financial outcomes. The company’s financial performance has been affected by ongoing challenges related to defense contracts, which have contributed to higher-than-anticipated costs and reduced profitability. This information was highlighted in a finance-focused report from Slovenia, indicating broader implications for the aerospace sector. In the first half of this year, Group Sij recorded nearly 38 million euros in losses, despite showing signs of gradual improvement in business trends. The group generated 492 million euros in revenue from sales during the period, a decrease of 26 million euros compared to the same period last year. However, this figure represents an increase of 80 million euros over the second half of last year. Adjusted EBITDA for the first half of the year stood at 19.4 million euros, marking a turnaround from the negative 10.2 million euros recorded in the second half of 2025. Despite this positive shift, adjusted EBITDA remains slightly below the level of 20.5 million euros recorded in the first half of 2025. Net loss for the first half of the year totaled 37.9 million euros, slightly lower than the 23.8 million euros recorded in the first half of 2025 but higher than the 23.8 million euros from the first half of last year. Increased net financing costs, which reached 20.2 million euros during the first six months, along with other expenses such as employee benefits and restructuring costs, played a role in the continued losses. These factors underscore the ongoing financial pressures faced by the group. According to Group Sij’s management, while there has been a noticeable improvement in key operational indicators compared to the previous half-year, the results remain below those of the first half of 2025. The company continues to operate in challenging market conditions and remains cautious about future performance. “We observe a gradual improvement in key operating metrics compared to the previous half-year, with revenue from sales, adjusted EBITDA, and EBIT showing positive movement relative to the prior period,” stated a representative of the steel group. “This confirms that operations are beginning to stabilize. Nevertheless, results are still below the levels achieved in the first half of 2025, and market conditions remain demanding. Therefore, we remain focused on measures within our transformation strategy aimed at gradual recovery, establishing long-term competitiveness and resilience for Group Sij, as well as seeking strategic partners.” Group Sij plans further restructuring efforts to transition into a more agile business model based on value chains, improved organizational efficiency, and enhanced core business processes. In addition to internal initiatives aimed at improving efficiency, the group is also looking to external support, including government incentives and European Union policies. Recent changes in EU trade regulations have introduced stricter import controls for steel, reducing the scope of tariff-free quotas and increasing duties for excess quantities. Since the start of the year, the Carbon Border Adjustment Mechanism (CBAM) has also come into effect, aiming to establish more comparable conditions between European producers and importers from regions with less stringent environmental rules. Energy costs remain one of the main challenges for the European steel industry, prompting the largest Sij subsidiaries, Acroni and Metal Ravne, to apply for subsidies for cheaper electricity for energy-intensive businesses, with the application process concluding recently.