Why is Acerinox stock sliding today?

Acerinox stock experienced a 2.3% decline today following the Spanish stainless steel producer's release of third-quarter 2026 results. The company exceeded expectations with an adjusted EBITDA of €199 million, surpassing analyst forecasts by 8% and surpassing the €176 million achieved in the previous quarter. However, these results were overshadowed by concerns over the balance sheet, as Acerinox reported a significant deterioration in cash generation, resulting in negative free cash flow of €96 million in the quarter.

This was primarily due to €152 million in working capital outflows driven by increased business activity and higher raw material costs, as well as €80 million in capital expenditures. Over the first nine months of 2026, free cash flow turned negative at €201 million, a sharp contrast to the €155 million positive cash flow recorded in the same period a year earlier.

Consequently, net financial debt increased to €1.535 billion. Negative results from the High Performance Alloys segment and management's forecast of lower stainless steel volumes in Q4, attributed to typical US year-end seasonality, further contributed to the cautious market sentiment. Geopolitical tensions and reduced earnings in the Middle East also impacted quarterly earnings by €16 million.

The broader market did not provide much support, with Spain's IBEX 35 opening lower, alongside other index heavyweights. Global sentiment was similarly pressured by disappointing earnings from major US technology companies and rising crude oil prices. The decline in Acerinox stock exemplified a "beat-and-lower" pattern, as the strong Q3 EBITDA performance was unable to offset investor concerns over cash flow burn, rising debt levels, and a more subdued outlook for the future.