Impol Seval recorded a substantially larger loss in the first half of 2026 despite higher sales and production, as rising material, fuel and energy costs outpaced revenue growth at the Serbian aluminium producer. The Sevojno-based rolling mill reported a standalone net loss of RSD 346 million, about €2.9 million, compared with RSD 86.7 million in the same period a year earlier. Operating revenue increased to RSD 11.6 billion from RSD 10.5 billion, while operating expenses rose to RSD 11.9 billion from RSD 10.6 billion.
Input costs outpace revenue growth
Costs for materials, fuel and energy climbed to approximately RSD 10.4 billion, compared with RSD 9.1 billion a year earlier. The increase offset higher sales and reductions achieved through internal cost measures. Management said production costs per tonne were reduced, but the savings did not fully compensate for higher input expenses, including a higher premium on physical aluminium purchases.
Production reached 26,119 tonnes, up 1.4% from the first half of 2025 but 2.2% below plan. The higher output was not sufficient to restore profitability as demand for aluminium products remained weak while raw-material, energy and service costs increased.
Export exposure to EU demand
Approximately 96% of Impol Seval’s production is exported, with the European Union accounting for the majority of its sales. This leaves the company exposed to European industrial demand, international aluminium prices, energy costs and changing trade conditions. Impol Seval has subsequently raised prices for finished products and expects part of the effect to emerge during the second half of the year. The company is also facing the challenge of passing higher costs to customers while European demand remains weak. The product mix presents an additional factor. Impol Seval is using more of its foundry capacity and producing a larger share of products with a lower degree of processing and lower added value.
Debt and employment measures
The company’s financial position has also changed during the period. Credit debt declined from approximately €21.4 million at the end of 2025 to below €20 million at the end of June, while the weighted borrowing interest rate stood at around 3.96%.
Employment decreased from 534 workers at the end of 2025 to 489 at mid-year, contributing to efforts to contain labour costs. Despite lower borrowing and internal reductions in production costs per tonne, the measures had not restored operating profitability by the end of the first half.
Aluminium exports face EU carbon requirements
The performance of Impol Seval also reflects wider conditions for Serbia’s aluminium export chain, where competitiveness depends on metal prices, electricity costs, processing efficiency, logistics and production emissions. The EU’s Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase in 2026 and covers aluminium. For Serbian aluminium producers, the mechanism increases the importance of verified embedded-emissions data, electricity sourcing and production carbon intensity.
The first-half results show that higher production and revenue can coincide with weaker financial performance when input costs rise faster than sales and the product mix contains a greater share of lower-value material. Impol Seval’s second-half results will depend on the impact of higher finished-product prices and the company’s ability to manage raw-material and energy costs while operating in a weak European demand environment.
