How Investors May Respond To SSAB (OM:SSAB A) Supplying Fossil-Free Steel for Landmark Vattenfall Dam Project

• Vattenfall has announced an agreement with SSAB to deliver 120 tonnes of fossil-free steel for the world’s first dam gate manufactured with near-zero fossil carbon dioxide emissions, using HYBRIT technology developed by SSAB, Vattenfall, and LKAB.
• This project marks a significant milestone in large-scale infrastructure applications for fossil-free steel and highlights deepening collaboration between leading players in the decarbonization of heavy industry.
• We'll examine how SSAB's funding for electrifying its Luleå mill could reshape its investment narrative and green competitiveness.

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SSAB Investment Narrative Recap

For investors considering SSAB, the key narrative centers on the transition to fossil-free steel production, an ambition that positions the company as a potential leader in decarbonized metals. The recent Vattenfall agreement offers an important proof of concept but does not materially change the main short-term catalyst: progress on the Luleå mill electrification, while the biggest risk remains further project delays that could slow commercialization of premium, low-carbon steels.

The SEK 314 million funding recently received to electrify finishing processes in the Luleå mill is highly relevant, directly supporting the company’s ability to bring fossil-free steel to commercial scale and maintain its edge as policy and customer demands for low-carbon steel accelerate.

However, in contrast, investors should also be aware that...

Read the full narrative on SSAB (it's free!)

SSAB's narrative projects SEK105.7 billion revenue and SEK7.0 billion earnings by 2028. This requires 2.1% yearly revenue growth and a SEK2.5 billion earnings increase from the current SEK4.5 billion.

Uncover how SSAB's forecasts yield a SEK69.88 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 12 fair value estimates for SSAB, ranging widely from SEK47.86 to SEK185.24 per share. While many see significant upside, recent news underscores how success in fossil-free steel production could be central to SSAB’s future and worth considering from multiple viewpoints.

Explore 12 other fair value estimates on SSAB - why the stock might be worth 21% less than the current price!

Build Your Own SSAB Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SSAB research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free SSAB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SSAB's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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