Tata Steel Q3 results: solid group performance but continued pressure drags on European operations
Commenting on the latest results from Tata Steel, Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “Tata Steel’s Q3 results show a solid group performance driven by India, but continued pressure across its European operations. While Europe has slipped into an EBITDA loss for the quarter, the more important shift is what this signals for the rest of this year.
“In the EU, protectionist measures are expected to feed through from next quarter, with carbon border mechanisms (CBAM) potentially triggering a restocking. Combined with an increase in infrastructure and defence spending this is likely to support steel prices and improve the outlook for the Netherlands business. The UK, however, is effectively locked out of these benefits. Flat demand, import quotas that exceed domestic consumption and falling prices mean the UK market remains under the most pressure of any of Tata Steel’s divisions.
“Looking further ahead, the outlook improves for 2027. The introduction of a UK carbon border mechanism, alongside Tata Steel’s transition to lower-carbon electric arc furnace production at Port Talbot, should materially strengthen competitiveness. The near-term challenge is managing the gap until those structural supports take effect, but the longer-term trajectory for the UK business is far more constructive.”