Voestalpine (VOE) H1 2025 earnings summary

Executive summary

• Revenue declined 5.5% year-over-year to €8,042m in H1 2024/25, with EBITDA down 20.5% to €718m and EBIT down 34.8% to €339m, impacted by lower volumes, prices, and one-off effects from the Buderus Edelstahl sale.

• Net profit after tax decreased 43% to €183m, and EPS dropped to €0.94, with all divisions affected by weak economic momentum.

• Major structural actions included the sale of Buderus Edelstahl and reorganization of the Automotive Components business in Germany.

• International growth projects advanced, notably in Railway Systems, with acquisitions and joint ventures in the US and Egypt, and project completions in Hong Kong.

• Decarbonization project (greentec steel) is progressing on time and on budget, targeting a 30% CO2 reduction with €1.5 billion CapEx.

Financial highlights

• Revenues declined by €500 million year-over-year, with €300 million from lower prices and €200 million from lower volumes; all divisions saw reductions.

• EBITDA margin decreased to 8.9% from 10.6% year-over-year; EBIT margin fell to 4.2% from 6.1%.

• EBITDA decreased by €185 million, including an €81 million negative impact from the Buderus sale and €22 million from gas storage valuation changes.

• Free cash flow was negative €165 million in H1, with €56 million invested in greentec steel projects.

• Cash flow from operating activities was €350 million, compared to €390 million in the prior period, impacted by a €100 million tax payment related to a previous strong year.

Outlook and guidance

• No recovery expected in Europe in the second half, with muted demand in the automotive sector and non-recurring expenses for German Automotive Components reorganization included in forecasts.

• Positive performance expected to continue outside Europe, especially in Railway, Aerospace, Warehouse and Rack Solutions, and Tubes and Sections.

• Full-year EBITDA forecast is around €1.4 billion, including over €100 million in one-off costs.