Voestalpine’s Strategic Shift: Higher Profits Amid Lower Revenue

The Austrian steel and technology group Voestalpine has presented a compelling financial narrative for the first nine months of its 2025/26 fiscal year. The company's latest figures reveal a strategic pivot where enhanced profitability and a stronger balance sheet are being achieved even as total sales decline. This performance has resonated positively with investors, though questions remain about the sustainability of this trend in a lower-revenue environment.

For the reporting period covering April through December 2025, Voestalpine's revenue contracted by 5.1% to €11.1 billion. Despite this top-line pressure, the company's bottom-line metrics showed significant improvement. Earnings before interest, taxes, depreciation, and amortization (EBITDA) advanced by 7.2%, reaching €1.0 billion.

The operational performance was even more robust. Earnings before interest and taxes (EBIT) saw a substantial increase of 20.9%, climbing to €473 million. The pre-tax result surged by 46.5% to €372 million, while net income after tax rose by 25.1% to €259 million.

Key Financial Metrics (Q1–Q3 2025/26):
- Revenue: €11.1 billion (-5.1%)
- EBITDA: €1.0 billion (+7.2%)
- EBIT: €473 million (+20.9%)
- Net Income After Tax: €259 million (+25.1%)

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

Strengthened Financial Position and Strategic Projects

A notable feature of the quarterly report is the marked improvement in the company's financial health. Net financial debt was reduced by 27.4% year-on-year, now standing at €1.4 billion. This deleveraging was supported by a strong free cash flow generation of €345 million during the nine-month period.

Concurrently, the workforce, measured in full-time equivalents, was reduced by 3.8% to 48,700 employees. The company also reported that its major strategic initiative, the "greentec steel" project, remains on schedule. This green steel transformation involves planned investments of approximately €1.5 billion.

Confirmed Outlook and Positive Market Reaction

Voestalpine's management has reaffirmed its full-year guidance for the 2025/26 period. The company continues to anticipate an EBITDA in the range of €1.4 billion to €1.55 billion.

The market response to this report has been favorable. On the Vienna Stock Exchange, Voestalpine shares closed above €44 on Wednesday, marking a daily gain of more than 2%. Since the start of the year, the equity has appreciated by roughly 16%. The central challenge for the company now is to demonstrate that it can deliver on its confirmed EBITDA target while navigating a persistent downward trend in revenue.