Profit Jump Despite Revenue Dip: Voestalpine Keeps Reform Drive on Track

Financial highlights for Apr 2025?Dec 2025
- Revenue declined 5.1% to ?11.1 billion, primarily due to the strategic portfolio rationalization.
- Operating profit (EBIT) rose about 20% to ?473 million.
- Profit before tax climbed 46.5% to ?372 million, far outpacing the revenue drop.
- The positive margin development illustrates the impact of the company?s restructuring and efficiency measures.

Cash flow and leverage improvements
- Operating cash flow improved by just over 50%, reaching ?1.1 billion.
- Free cash flow turned positive at ?345 million.
- Net financial debt was reduced by more than a quarter, to ?1.4 billion, providing capital headroom amid continued investment in transformation initiatives, including greentec steel.
- The ?1.5 billion investment program for green steel production is reportedly progressing in line with management?s timetable.

Segment performance: mixed signals amid sectoral headwinds
- Winners: Railway Systems, Aerospace, and Warehouse Technology delivered stronger momentum.
- Losers: Automotive Components continued to be pressured by weakness in the European automotive market; Construction and Mechanical Engineering also remained subdued.
- The High Performance Metals division has largely completed its portfolio cleanup, including the sale of Buderus Edelstahl. In Germany, reorganizations within the automotive supplier landscape are ongoing to bolster resilience in that business unit.

Should investors sell immediately? Or is it worth buying Voestalpine?

Strategic actions and outlook
- The board reaffirmed the annual guidance, targeting EBITDA of ?1.4 billion to ?1.55 billion for the full year.
- With lower indebtedness and the completed portfolio cleanup, Voestalpine says it has a solid base to offset ongoing weakness in the automotive sector and to drive its transformation toward green steel production largely on its own.

In summary, Voestalpine demonstrated notable earnings strength in the first nine months of the year despite a revenue decline, thanks to efficiency programs, disciplined capital management, and a strategic focus on higher-growth segments and green steel initiatives. The company remains on track to meet its full-year EBITDA target while continuing the portfolio adjustments and debt reduction that support its ongoing transformation.

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