Voestalpine lifts first-quarter earnings as steel transition remains on track

Voestalpine recorded higher revenue and a significant improvement in earnings in the first quarter of its 2026/27 financial year, while confirming that construction of its new electric arc furnaces in Linz and Donawitz remains on schedule.

Group revenue for the April-June quarter increased by 2.4% year-on-year to €4 billion, while EBITDA rose from €361 million to €495 million. EBIT increased by 78.8% to €307 million and profit after tax reached €196 million, up from €106 million a year earlier.

The results included around €100 million in one-off effects, mainly related to portfolio measures and restructuring in the High Performance Metals Division.

Steel business gains automotive market share

Market conditions remained mixed across Voestalpine's operations. Railway Systems and aerospace continued to perform strongly, while demand from construction, mechanical engineering and consumer goods remained stable at subdued levels.

The European automotive sector continued to face a difficult environment. However, Voestalpine said its Steel Division gained additional automotive market share, supported by product quality, delivery reliability and stable logistics.

The company is continuing to restructure lower-margin activities while expanding internationally. In North America, Voestalpine recently doubled capacity at its Jeffersonville plant in Indiana and is also building a new facility for railway components in Ontario, Canada.

Electric arc furnace projects remain on schedule

Voestalpine's greentec steel transformation programme is progressing according to plan, with new electric arc furnaces in Linz and Donawitz scheduled to start operations during the first half of 2027. The company said both projects remain on schedule and within budget.

Further electrification is planned for Donawitz. Subject to outstanding funding issues, Voestalpine intends to expand the site by 2030 with upgraded electricity infrastructure, a third secondary metallurgy line and additional scrap logistics.

The Supervisory Board has already approved around €100 million for the expansion. The project would enable Donawitz to fully transition to electric steel production from 2030.

Debt falls despite transformation investments

Voestalpine generated free cash flow of €224 million during the quarter, including approximately €150 million from the sale of Voestalpine BÖHLER Profil.

Net financial debt fell 28.7% year-on-year to €1 billion, while equity increased to €8 billion. The gearing ratio consequently improved to 12.9%.

The group employed around 48,640 people at the end of June, 1.8% fewer than a year earlier, mainly due to restructuring measures.

Voestalpine maintained its outlook for the full 2026/27 financial year despite continuing geopolitical and economic uncertainty. The company expects EBITDA of between €1.60 billion and €1.85 billion.

Source: Voestalpine