Profitability Advances for Voestalpine Despite Revenue Dip

Key nine-month figures
- Revenue: EUR 11.1 billion (-5.1%)
- EBITDA: approximately EUR 1.0 billion (+7.2%)
- EBIT: EUR 473 million (+20.9%)
- Profit before tax: EUR 372 million (+46.5%)
- Net debt: reduced to EUR 1.4 billion

Disparity between sales and earnings

The revenue drop to EUR 11.1 billion is attributed by the group to lower selling prices and currency effects from a softer U.S. dollar. By contrast, EBITDA surpassed the EUR 1 billion mark, underscoring improved cost efficiency across the business. The pre-tax profit rose sharply, up nearly half year on year to EUR 372 million.

Balance-sheet resilience returns

A central takeaway from the latest results is a sizable lift in liquidity. The operating cash flow jumped by more than 53% versus the previous year, reaching EUR 1.1 billion. This allowed management to reduce net debt by approximately EUR 300 million. The balance sheet looks sturdier, with an equity ratio of 50% and a gearing ratio of 18.7%.

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Segment performance: mixed signals

The quarterly picture is two-sided. The Steel Division benefited from solid demand in the automotive sector, delivering an EBITDA margin north of 13%. The Railway Systems unit also posted solid figures. In contrast, the Metal Engineering division faced headwinds from U.S. tariffs affecting the tube business, pushing its margin down to 8.7%.

Transformation and outlook

The company?s strategic overhaul is progressing as planned. The greentec-steel program, which targets a shift to electric arc furnaces, remains on schedule and within budget. Meanwhile, the restructuring of the High Performance Metals unit is largely complete. Management reaffirmed the annual guidance, expecting EBITDA in a range of EUR 1.4 billion to EUR 1.55 billion. The bracket reflects unresolved details around a transaction within High Performance Metals; the completion of that deal in the current quarter will be pivotal for the final result.

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