Voestalpine Maintains Full-Year Outlook on Strong Profitability Gains

The Austrian steel and technology group Voestalpine has reported a notable financial dynamic for the first three quarters of its 2025/26 fiscal year: significantly higher profits on a lower revenue base. The company has also reaffirmed its full-year earnings guidance, demonstrating resilience in a challenging market environment.

The group's operational and bottom-line figures showed substantial improvement through December:

• Revenue amounted to €11.1 billion, representing a decline of 5.1%.
• Earnings before interest and taxes (EBIT) advanced by 20% to reach €473 million.
• Profit before tax saw a sharp increase of 46.5%, landing at €372 million.
• Consolidated profit after tax rose by 25.1% to €259 million.
• Free cash flow generation was robust at €345 million.
• The global workforce stood at 48,700 employees, a reduction of 3.8%.

Divisional Performance Highlights Mixed Demand

A breakdown of operational performance reveals a sector-specific picture. Management highlighted continued solid demand within its Railway Systems division and from the aerospace industry. These strengths were, however, partially offset by softer conditions in the automotive sector and a generally subdued European industrial economy.

The company described demand from the mechanical engineering and construction industries as stable at a low level, indicating that a broader industrial recovery remains elusive.

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Strategic Focus Underpins Improved Margins

The substantial profit growth against a backdrop of falling sales is attributed to a disciplined strategic approach. Voestalpine points to lower input prices and the ongoing benefits of internal reorganization measures as key drivers. The strong free cash flow figure further validates the company's improved financial quality during this period.

Confirmed Outlook and Strategic Priorities

Looking ahead to the close of the fiscal year, Voestalpine's leadership has reiterated its existing forecast. The company continues to expect its full-year EBITDA to fall within a range of €1.4 billion to €1.55 billion.

This confidence is linked to its strategic emphasis on quality, innovation, and operational efficiency, supported by its geographic and industrial diversification. Specific growth initiatives, including expansion projects in India and the transformation of its steel production via the "greentec steel" program, were also cited as foundational to its long-term trajectory.

In summary, Voestalpine's nine-month results paint a picture of successful margin expansion and cash generation. With its annual EBITDA target firmly intact, the company is navigating near-term demand variability by leveraging its strategic and structural initiatives.