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

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


    
   End of News EQS News Service


   2150012  04.06.2025 CET/CEST

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