Mechel PAO Income Statement 2021-2009 | MTL

Brief overview of revenue and earnings at Mechel PAO

The conclusions below are based on five years of reported results. Revenue at Mechel PAO moved from 253 billion rubles in 2015 to 265 billion rubles in 2020. The cumulative result was +4.9%, corresponding to roughly 1% per year. Sales changed only slightly and remained broadly flat.

The gross result shifted from 102 billion rubles to 94.8 billion rubles, or −6.8%. Cost of revenue developed less favorably than sales and pressured gross profitability. Gross margin moved from 40.2% to 35.7%. The contraction points to pressure from direct costs or weaker pricing power.

The five-year EBITDA result moved by −17.8%: from 24.3 billion rubles to 19.9 billion rubles. EBITDA lagged revenue, showing weaker operating momentum. EBITDA margin moved from 9.6% to 7.5%. The business retained less EBITDA from each unit of revenue.

The net financial result changed from −115 billion rubles to 1.5 billion rubles. The company restored profitability by the end of the period.

Market capitalization changed from 683 million rubles to 211 million rubles (−69.1%). The market is not yet fully reflecting the fundamental progress.

Overall conclusion

The indicators point to a weaker financial profile. The constructive conclusion rests on a stronger final result. The main areas of concern are a lower gross margin, pressure on operating profitability and declining capitalization. The key question is whether sales can be converted into sustainable profit.