EQS-News: voestalpine AG / Key word(s): Annual Results
voestalpine AG: voestalpine generates solid result in the 2024/25 business
year despite difficult environment

04.06.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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voestalpine generates solid result in the 2024/25 business year despite
difficult environment
 

• EBITDA as expected at EUR 1.3 billion (previous year: EUR 1.7 billion)
• Revenue down moderately to EUR 15.7 billion (BY 2023/24: EUR 16.7
billion)
• Key earnings figures influenced by difficult environment and
reorganization measures
• Debt remains at a historically low level despite increased investing
activities
• High free cash flow of EUR 309 million
• Local-for-local strategy further strengthened with new growth projects
• greentec steel: around 1/3 of EUR 1.5 billion already invested in
Austria’s largest climate protection program
• Number of employees (FTE) decreased by 3.7%, to 49,700
• Outlook 2025/26: EBITDA between EUR 1.4 billion and EUR 1.55 billion

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 CO[2]
emissions can be saved compared to 2019, which corresponds to almost 5% of
Austria’s annual CO[2] 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 CO[2]
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 CO[2] 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 CO[2] 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.
Please direct your inquiries to

voestalpine AG
Peter Fleischer
Head of Investor Relations
voestalpine-Strasse 1
4020 Linz, Austria
T. +43/50304/15-9949
peter.fleischer@voestalpine.com
[1] www.voestalpine.com
 

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04.06.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com

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Language: English
Company: voestalpine AG
voestalpine-Straße 1
4020 Linz
Austria
Phone: +43 50304/15-9949
Fax: +43 50304/55-5581
E-mail: IR@voestalpine.com
Internet: www.voestalpine.com
ISIN: AT0000937503
WKN: 897200
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 2150012

 
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