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Voestalpine delivers strong performance in FY 2025/26 despite volatile market conditions

Austria-based steel and technology group voestalpine achieved overall very positive results in fiscal year 2025/26, covering the period from April 1, 2025, to March 31, 2026, despite significant uncertainties prevailing throughout the year.

Voestalpine delivers strong performance in FY 2025/26 despite volatile market conditions

The company’s EBITDA increased from €1.3 billion to €1.5 billion, while operating profit (EBIT) rose by 59% from €455 million to €724 million. Profit before tax increased by 116.9% to €587 million, while net profit after tax surged by 137.6% to €424 million. In contrast, revenue declined by 4.3% from €15.7 billion to €15.1 billion.

The company generated a strong free cash flow of €537 million and reduced its net financial debt by 23.4% to €1.3 billion. Equity reached €7.8 billion, while the debt-to-equity ratio fell to 16.2%, its lowest level since fiscal year 2005/06.

Voestalpine CEO Herbert Eibensteiner stated that the company had once again demonstrated the resilience of its strategic direction, adding that efforts remain focused on restructuring low-return business segments and accelerating international growth projects. Eibensteiner also emphasized that significant progress had been made toward the company’s net-zero CO₂ emissions target.

The company’s operating segments presented a mixed picture. Demand in the Railway Systems Division remained strong, while the aerospace sector delivered solid performance. In contrast, demand in the construction, mechanical engineering, and consumer goods sectors remained weak. Demand from the energy sector supported the Steel Division’s products, while weak production dynamics in Europe negatively affected the Metal Forming Division despite continued strength in the automotive sector. Warehouse technology continued to be a key growth driver.

The 50% U.S. steel tariffs that came into effect on June 4, 2025, negatively impacted the company’s financial results, resulting in a negative effect amounting to several tens of millions of euros. The impact was particularly noticeable in activities related to the U.S. market.

Strong order intake was recorded in key processing segments during fiscal year 2025/26. Record orders were secured in the aerospace and warehouse technology segments, while the company further strengthened its global leadership in railway systems. Orders worth a total of €500 million from major operators, including Deutsche Bahn and Swiss Federal Railways, covered rails, turnout systems, signaling solutions, and monitoring technologies.

In the aerospace segment, orders totaling approximately €1 billion were secured for the next five years. Most of these orders came from Airbus and cover high-performance materials, forged components, and logistics services.

Voestalpine also received its largest-ever order in the high-bay warehousing segment for the construction of a 40-meter-high advanced logistics center in Istanbul.

The company continued restructuring measures initiated in fiscal year 2024/25 throughout fiscal year 2025/26. Restructuring of the automotive components segment within the Metal Forming Division continued in Germany, while the High Performance Metals Division focused its product portfolio on more advanced materials. The restructuring process was largely completed through the sale of Buderus Edelstahl, facility consolidations, and capacity adjustments.

Within the Metal Engineering Division, voestalpine Tubulars reduced production due to lower demand caused by the 50% U.S. tariffs. As part of the restructuring process, the workforce decreased by 1.8% to 48,800 employees. Social plans were implemented in coordination with employee representatives.

The company’s Greentec Steel project is progressing as planned. Electric arc furnaces to be installed in Linz and Donawitz are scheduled to enter operation in the first half of 2027. Once completed, the project is expected to reduce CO₂ emissions by up to 30% compared with 2019 levels. Approximately 60% of the total €1.5 billion investment has already been completed, and delivery of the main equipment is expected in autumn 2026.

Voestalpine will propose a dividend of €0.75 per share for fiscal year 2025/26.

Regarding fiscal year 2026/27, the company expects geopolitical uncertainty and economic volatility to persist. Developments in the Middle East, energy prices, and economic relations between Europe and North America are highlighted as key risk factors.

In the Steel Division, market conditions are expected to improve with the implementation of the Carbon Border Adjustment Mechanism (CBAM) and EU safeguard measures. However, delays in energy projects are expected to remain a limiting factor for the heavy plate segment.

Assuming current market conditions remain largely unchanged, the company expects EBITDA for fiscal year 2026/27 to range between €1.60 billion and €1.85 billion.

 

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