EQS-News: voestalpine AG: voestalpine generates solid result in the 2024/25 business year despite difficult environment

Once again, voestalpine demonstrated resilience and strength in the past business year (April 1, 2024 to March 31, 2025) and achieved a solid result despite extremely challenging conditions. With its strategic focus on high-tech products and its broad positioning in terms of regions and sectors, the global steel and technology group succeeded in defying the trend, with good performance even in Europe’s difficult environment. The rail infrastructure and aerospace segments performed particularly well. High demand was also witnessed in the storage technology segment. The consumer goods and mechanical engineering industries remained at a low level, while the energy sector weakened over the course of the business year. Demand from the automotive industry for the products of voestalpine’s Steel Division was stable, while especially the German Automotive Components locations of the Metal Forming Division saw low capacity utilization. Management took proactive steps and initiated a comprehensive reorganization program for the European and, in particular, German locations of the Automotive Components business unit. Reorganization measures were also carried out in the High Performance Metals Division. With the sale of the Buderus Edelstahl business operations that was completed at the end of January, voestalpine’s High Performance Metals Division is concentrating its product portfolio on the technologically demanding segment of high-performance materials. “Our response to the challenging economic situation, particularly in Europe, was active management with a focus on earnings quality, generating free cash flow, ensuring a stable low level of debt, and launching necessary reorganization measures in a few business units. At the same time, we continued growth projects. Our Group strategy provides a solid foundation for this,” says Herbert Eibensteiner, CEO of voestalpine AG.

voestalpine accelerates local-for-local strategy

In an environment characterized by protectionism and de-globalization, voestalpine continued its successful local-for-local strategy in the past business year and implemented several expansion projects in dynamic markets such as Egypt, India, Brazil, and North America. The Group focuses here on high-tech segments with the highest quality standards and develops innovative products and solutions together with its local customers. In Brazil, voestalpine is one of the leading manufacturers of special tubes and sections, and the location in Caxias do Sol is currently being expanded to include a logistics center with corresponding facilities. In the niche area of welding technology, voestalpine has invested in expanding its production of welding consumables in India and in strengthening its application technology in order to be able to provide customers with even more comprehensive local service. voestalpine has also been successfully pursuing its strategy of establishing local turnout production facilities in strategically important markets in the rail infrastructure sector for many years. The most recent example of this is the production of high-performance turnouts in Cairo, Egypt. voestalpine Railway Systems is supplying around 260 high-speed turnouts including turnout maintenance software for the construction of the first Egyptian high-speed line (“Green Line”). The foundation has been laid for the expansion of production and sales capacities in the storage systems business segment in Louisville, Kentucky (USA). voestalpine has also concluded new long-term contracts with two globally active truck manufacturers for the North American market, for which the Group is expanding production capacities at its existing location in Indiana, USA.

Climate protection program greentec steel running according to plan

With greentec steel, voestalpine has a clear phased plan for steel production: In the first step, an electric arc furnace will be put into operation in both Linz and Donawitz from 2027. By 2029, up to 30% of CO₂ emissions can be saved compared to 2019, which corresponds to almost 5% of Austria’s annual CO₂ emissions, making greentec steel the largest climate protection program in Austria. The investment costs will come to EUR 1.5 billion, a third of which has already been invested. In the long term, the Group is aiming for steel production with net zero CO₂ emissions by 2050, and is already working on various innovative research projects to achieve this. “We have deliberately structured our transformation plans on a modular basis and are in the middle of the practical implementation of the first step, despite the uncertain framework conditions,” emphasizes voestalpine CEO Eibensteiner.

Competitive framework conditions are urgently needed

As a globally active group, voestalpine not only had to contend with increasing trade barriers in the past business year, but also with high labor and energy costs, the world’s strictest CO₂ regime, and an enormous amount of bureaucracy—especially in Central Europe. voestalpine welcomes the latest political commitments to the industry at national and EU level, but sees a lack of concrete actions. “Enough talk—it's time for concrete action. In order to secure Europe’s competitiveness as a business location, we need a fundamental change in energy, climate, and industrial policy,” says Eibensteiner.

From voestalpine’s standpoint, the first steps in the right direction would be to extend the free allocation of emissions trading certificates beyond the planned expiry date of 2034, to earmark CO₂ revenue for transformation projects such as greentec steel, and to correct the Carbon Border Adjustment Mechanism (CBAM). voestalpine also demands that the electricity price compensation granted by all other EU countries be extended to Austria in order to reduce energy costs, and that no further burdens be placed on Austrian companies, such as those imposed by the Renewable Gas Act.

Good operating result, one-off-effects due to restructuring measures, high free cash flow

In a year-to-year comparison, voestalpine’s revenue fell by 5.6% to EUR 15.7 billion (BY 2023/24: EUR 16.7 billion). The operating result reached EUR 1.3 billion (previous year: EUR 1.7 billion), while EBIT amounted to EUR 455 million (BY 2023/24: EUR 569 million). The decline in the operating result is due in part to the difficult general conditions but also to the aforementioned restructuring measures initiated within the Group. The sale of the Buderus Edelstahl business operations, expenses for the reorganization of sales locations, and the impairment of goodwill led to negative one-off effects of EUR 176 million in the High Performance Metals Division, of which EUR 92 million had an impact on EBITDA. In the Metal Forming Division, the reorganization of the Automotive Components business unit and impairment of goodwill resulted in negative one-off effects on EBIT of EUR 87 million and on EBITDA of EUR 45 million.

Consolidated earnings before taxes amounted to EUR 271 million. Profit after tax was EUR 179 million. Cash flows from operating activities remained at the previous year’s level of EUR 1.4 billion due to the rigorous management of working capital despite the decline in profit. The free cash flow of EUR 309 million for the 2024/25 business year despite high level of investing activities and a difficult environment reflects the outstanding performance of the company and its employees.

As in the previous year, leverage remained stable at a low level despite increasing investing activities in the last two years and regular dividend payments. Net financial debt remained unchanged at EUR 1.65 billion as of March 31, 2025 (March 31, 2024: EUR 1.65 billion). Equity amounted to EUR 7.5 billion as of March 31, 2025. The gearing ratio (net financial debt in relation to equity) remained virtually unchanged compared to the previous year at 22.1%.

On March 31, 2025, the number of employees in the voestalpine Group worldwide amounted to around 49,700 (full-time equivalents) which is 3.7% lower than in the previous year (51,600). The decrease is mainly due to the sale of the Buderus Edelstahl business operations and the reorganization of the Automotive Components business unit.

Proposed dividend: EUR 0.60

Subject to approval by the Annual General Meeting of voestalpine AG on July 2, 2025, a dividend of EUR 0.60 per share (previous year: EUR 0.70) will be paid to the company’s shareholders.

Outlook for the business year 2025/26

At the start of the 2025/26 business year, global economic uncertainty prevails. This situation was triggered by tariffs imposed by the US administration on April 2, 2025, affecting nearly every economy engaged in trade with the United States. Although a 90-day suspension helped to stabilize the sharply declining capital markets, it has not calmed the real economy, which is adapting to increasingly unpredictable conditions. As a result, most economists have revised their global growth forecasts for 2025 and 2026 downward.

In addition to these macroeconomic effects, the voestalpine Group is directly impacted in the 2025/26 business year by tariffs enacted by the US administration on March 12, 2025, which target steel and aluminum imports into the United States. Based on current assessments, these tariffs are expected to have a negative impact on voestalpine’s earnings in the mid-double-digit million-euro range over the course of the 2025/26 business year.

Against this backdrop, any forecast regarding the company’s earnings performance for the full 2025/26 business year involves significant uncertainty.

Economic growth in North America appears to be slowing, but is expected to remain positive. Europe, after two challenging years, is also projected to see slight economic growth. The full impact of US tariff policy remains difficult to gauge at present. China continues to uphold its stated strategic growth target of 5%. However, if trade with the United States cools in response to reciprocal tariffs, achieving this target may become more difficult.

In voestalpine’s market segments, the economically sensitive areas of construction, mechanical engineering and consumer goods are expected to show largely stable performance at a low level, with a potential slight recovery toward the end of the 2025/26 business year. The railway infrastructure, warehouse & rack solutions as well as aerospace sectors are expected to continue their strong performance during the 2025/26 business year. Demand in the automotive industry is anticipated to remain stable at its current level.

The reorganization measures initiated during the previous reporting period should begin to contribute positively to earnings in the 2025/26 business year.

Against this backdrop, voestalpine AG’s management board currently expects EBITDA for the 2025/26 business year to range between EUR 1.40 billion and EUR 1.55 billion.

The voestalpine Group

voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. The voestalpine Group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and machinery industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel program. In the business year 2024/25, the Group generated revenue of EUR 15.7 billion, with an operating result (EBITDA) of EUR 1.3 billion; it has around 49,700 employees worldwide.