EQS-News: voestalpine AG: voestalpine holds its ground in a challenging economic environment and generates strong free cash flow in Q1 2025/26

EQS-News: voestalpine AG / Key word(s): Quarterly / Interim
Statement/Quarter Results
voestalpine AG: voestalpine holds its ground in a challenging economic
environment and generates strong free cash flow in Q1 2025/26

06.08.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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voestalpine holds its ground in a challenging economic environment and
generates strong free cash flow in Q1 2025/26
» Revenue down slightly to EUR 3.9 billion (Q1 2024/25: EUR 4.1 billion)
» EBITDA at EUR 361 million in Q1 2025/26 (previous year: EUR 417 million)
» Strong free cash flow of EUR 188 million and continued reduction in net
financial debt
» Gearing ratio at lowest level since the business year 2006/07 despite
increased investment requirements
» Ongoing implementation of reorganization projects
» Number of employees (FTE) decreased by 3.5% to 49,600
» Outlook for 2025/26 remains unchanged with expected EBITDA of EUR 1.4 to
1.55 billion

voestalpine generated a solid result in the first quarter of the 2025/26
business year (April 1 to June 30, 2025). The steel and technology group’s
robust strategy—its global positioning and sector diversification—as well
as its strong financial position once again proved to be effective in an
environment shaped by economic uncertainty, tariffs, and trade
restrictions. Global demand in the Railway Systems business segment
remained strong throughout the first quarter, while the aerospace segment
also continued its positive market development during the reporting
period. The consumer goods and mechanical engineering industries continued
to stagnate at a low level. Demand for products from the energy sector
declined significantly in the first quarter of the business year. The
Steel Division, however, recorded exceptionally high demand for its
products used in international pipeline projects. Call-offs from
automotive manufacturers remained subdued in the first three months of the
2025/26 business year. Particularly in Europe, and most notably in
Germany, demand remained weak. While this directly affected the Automotive
Components business segment, demand from the automotive industry for the
products of voestalpine’s Steel Division remained stable at a good level.
The Warehouse & Rack Solutions business segment continued its positive
trend into the new 2025/26 business year.

“voestalpine held its ground well in this difficult environment and
continued to expand its international leadership in innovation and
technology, particularly in rail infrastructure and storage systems. We
were able to generate an exceptionally high free cash flow in the first
quarter, thanks to our resilient business model and a strong focus on
working capital measures also made a decisive contribution to the positive
cash flow development,” says Herbert Eibensteiner, CEO of voestalpine AG.

Good result, strong free cash flow, solid statement of financial position

Revenue declined by 5.9% year-on-year to EUR 3.9 billion (Q1 2024/25: EUR
4.1 billion). The operating result (EBITDA) amounted to EUR 361 million
(Q1 2024/25: EUR 417 million), while EBIT fell by 24.7% year-on-year to
EUR 172 million. Consolidated earnings before taxes amounted to EUR 139
million, while profit after taxes amounted to EUR 106 million.

Cash flows from operating activities doubled compared to the previous year
and amounted to EUR 444 million. Free cash flow—supported in particular by
successful working capital projects—totaled EUR 188 million, despite lower
earnings.

Debt reduction continued in the first quarter: Net financial debt amounted
to EUR 1.5 billion as of June 30, 2025 (June 30, 2024: EUR 1.75 billion;
March 31, 2025: EUR 1.7 billion). Equity amounted to EUR 7.5 billion as of
June 30, 2025. As a result, the gearing ratio (net financial debt to
equity) improved year-on-year from 23.2% to 19.4% as of June 30, 2025, the
lowest level since the business year 2006/07, even with higher investment
needs due to the phased transformation to green steel production (greentec
steel).

On June 30, 2025, the number of employees in the voestalpine Group
worldwide amounted to around 49,600 (full-time equivalents), which is 3.5%
lower than in the previous year (51,400). The decrease is mainly due to
the sale of the Buderus Edelstahl business operations and the
reorganization of the Automotive Components business unit.

Outlook for the 2025/26 business year

In the first quarter of the financial year 2025/26, the economic
environment was shaped by two key developments: On the one hand, Germany’s
announced infrastructure program and intensified investments in the
European security architecture provided positive momentum. On the other
hand, upheavals in the established global trade order created growing
uncertainty. By the end of July 2025, the United States and the European
Union had reached a fundamental trade agreement, though details in
specific sectors – such as steel – remain unresolved. The European
Commission is addressing current key issues with its Steel and Metals
Action Plan to strengthen the competitiveness of European industry,
including an effective carbon border adjustment mechanism and a successor
system to the safeguard regulation to limit steel imports from third
countries. The EU’s specific positioning toward its global trade partners
has not yet been defined and may influence Europe’s future economic
momentum.

Despite these prevailing uncertainties, the voestalpine Group anticipates
continued stability in its key market trends: The automotive industry is
projected to remain stable, as are mechanical engineering, construction,
and consumer goods – albeit at a low level. Railway systems, aerospace,
and warehouse technology are expected to maintain robust demand throughout
the financial year 2025/26. The reorganization of Automotive Components
(Metal Forming Division) and the repositioning of the High Performance
Metals Division will continue to be implemented during the current
financial year. The earnings outlook for the year, published with the
2024/25 annual report, takes into account the uncertainties outlined above
and reflects a wide range of possible economic scenarios. Against this
backdrop, voestalpine AG’s Management Board reaffirms the June 2025
guidance, projecting EBITDA of EUR 1.40 – 1.55 billion for financial year
2025/26.

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
Mag. Peter Felsbach, MAS
Head of Group Communications I Spokesman
voestalpine-Strasse 1
4020 Linz, Austria
T. +43/50304/15-2090
peter.felsbach@voestalpine.com
www.voestalpine.com

Peter Fleischer
Head of Investor Relations
voestalpine-Strasse 1
4020 Linz, Austria
T. +43/50304/15-9949
peter.fleischer@voestalpine.com

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06.08.2025 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: 2179848

 
End of News EQS News Service

2179848  06.08.2025 CET/CEST

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