EQS-News: voestalpine: voestalpine counters challenging environment in Q3 2024/25 with active measures

EQS-News: voestalpine AG / Key word(s): Interim Report/9 Month figures
voestalpine: voestalpine counters challenging environment in Q3 2024/25
with active measures

12.02.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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• Good demand for voestalpine’s high-tech steel products
• Revenue decreased only slightly year-on-year to EUR 11.7 billion (from
EUR 12.4 billion)
• Comprehensive reorganization of the German automotive locations; sale
of Buderus Edelstahl
• Strategy of broad positioning by sector and region shows strength
• EBITDA of EUR 968 million influenced by negative one-off effects (Q3
2023/24: EUR 1.3 billion)
• Significant increase in free cash flow in the third quarter
• Net financial debt was reduced by 2.6% year-on-year to EUR 2 billion
• Equity remains stable at EUR 7.5 billion compared to the reporting
date (March 31, 2024)
• At 50,670, the number of employees (FTE) remained at the previous
year’s level (50,712)
• EBITDA outlook at around EUR 1.3 billion and profit from operations
(EBIT) at around EUR 500 million

The economic environment, especially in Europe, proved to be particularly
challenging for voestalpine in the first three quarters of the 2024/25
business year (April 1 to December 31, 2024). However, the international
steel and technology group profited from its global positioning and
industry diversification, and generally recorded pleasing demand for its
high-tech products. The railway infrastructure segment performed
particularly well in the first nine months of the current business year.
The aerospace segment was also able to continue its existing upward trend.
Energy industry consumption decreased over the course of the business
year, but the market for the products of voestalpine’s Steel Division in
this segment showed very positive demand trends. Demand for automated high
bay warehouses also continued in the storage system business segment. The
consumer goods industry and the construction and mechanical engineering
industries remained at a low level. Market momentum in the European
automotive industry has continued to slow down. As previously reported,
the voestalpine Management Board responded actively to the changing
conditions and initiated a comprehensive reorganization program for the
European and especially the German locations of the Automotive Components
business unit. With the sale of Buderus Edelstahl 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.

“We are countering the current difficult economic environment in Europe
with active management and a global growth strategy. Our Group strategy is
strong and we are in a solid financial position. Especially in these
challenging times, this is a stability factor and the basis for our
investments in the future,” says Herbert Eibensteiner, CEO of voestalpine
AG.

“Local for local”: international growth projects

The voestalpine Group is continuing to drive forward its “local for local”
strategy in various business segments this business year. For example, an
expansion of production and sales capacities is planned in the storage
systems business segment for the North American location in Louisville,
Kentucky. In the niche area of welding technology, in which the Group is
considered a global leader, 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 railway 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 key performance indicators in detail

In the first three quarters of the current business year, revenue fell by
5.2% from EUR 12.4 billion to EUR 11.7 billion. The operating result
(EBITDA) decreased by 23.6% year-on-year to EUR 968 million (Q1 to Q3
2023/24: EUR 1.3 billion). The profit from operations (EBIT) fell by 43.9%
year-on-year to EUR 391 million (previous year: EUR 697 million) and is
also influenced by negative one-off effects of around EUR 170 million.
These include, in particular, the impairment loss requirement already
processed in the first half of the year in connection with the sale of
Buderus Edelstahl, one-off effects from the reorganization of the
Automotive Components business unit in Germany, and valuation effects of
the voestalpine gas storage facility.

At EUR 254 million, earnings before taxes were 54.5% below the previous
year’s figure of EUR 558 million. Profit after tax fell to EUR 207 million
(Q1 to Q3 2023/24:
EUR 415 million). Free cash flow was significantly increased to around
EUR 130 million in the third quarter.

Net financial debt was reduced by 2.6% year-on-year to EUR 2 billion as of
December 31, 2024 (December 31, 2023: EUR 2.01 billion), an increase of
18.7% compared to the reporting date on March 31, 2024 (EUR 1.7 billion).
At EUR 7.5 billion, equity is at the level of March 31, 2024, while the
equity ratio increased from around 45% to 48%.  The gearing ratio (net
financial debt in relation to equity) remained unchanged compared to the
previous year at 26.2% as of December 31, 2024. Compared with the value as
of the reporting date on March 31, 2024 (22.0%), there has been a slight
increase in the gearing ratio.

The number of voestalpine Group employees (full-time equivalent) remained
at the previous year’s level (50,712) at 50,670 as of December 31, 2024.
Compared with the March 31, 2024 reporting date (51,589), the number of
employees declined by 1.8%.

Outlook

While the business year 2024/25 began with a solid performance, the
economic environment cooled noticeably as the year progressed. Europe
recorded hardly any significant growth over the entire reporting period.
In addition, the automotive industry, which is important for voestalpine,
weakened significantly in the third quarter. Outside Europe, the economy
performed significantly better. In North America, the economy developed
satisfying overall from voestalpine’s perspective, with only investment
activity slowing somewhat in the third quarter of the business year in the
course of the presidential election campaign. In Brazil, on the other
hand, the economy lost somewhat more momentum in the last quarter of the
report. In China, demand for the voestalpine Group’s products has held up
well overall in the business year 2024/25 to date, except for European
OEMs, which suffered a drop in sales in China in the third quarter of the
business year.

For the fourth quarter of the business year 2024/25, the Management Board
of voestalpine AG expects the good demand situation for railway
infrastructure, high bay warehouse technology and aerospace to continue in
all economic regions worldwide. There are hardly any signs of positive
economic impetus for Europe in the coming months. No recovery is expected
for the construction, mechanical engineering, consumer goods and
automotive sectors in the last quarter of the current business year,
except for restocking in individual segments. Expectations for North
America are divided. The Group’s local North American sites should
continue to benefit from the good economic momentum, whereas exports to
the USA are fraught with uncertainty due to the announced tariffs on steel
products. Considering the latest interest rate hike by the BCB (Brazil’s
central bank), there are no signs of any significant improvement in the
economic environment in Brazil. The Chinese voestalpine plants, which are
primarily dependent on local industrial production, should continue to
develop well in the coming months.

Against the backdrop of the results for the first nine months of the
current business year 2024/25 and the expectations for the final quarter,
the Management Board of voestalpine AG expects from today’s point of view
an EBITDA for the business year 2024/25 of around EUR 1.3 billion and
therefore slightly lower than previously communicated (around EUR 1.4
billion). This corresponds to an EBIT of around EUR 500 million. These
earnings expectations include negative non-recurring burdens of around EUR
200 million, among others from the sale of Buderus Edelstahl as well as
from reorganization projects like the Automotive Components sites in
Germany.

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 consumer goods industries, as well as to the aerospace and energy
industries. The company is also the global market leader in railway
systems, tool steel, 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 2023/24,
the Group generated revenue of EUR 16.7 billion, with an operating result
(EBITDA) of EUR 1.7 billion; it has around 51,600 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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12.02.2025 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: 2084765

 
End of News EQS News Service

2084765  12.02.2025 CET/CEST

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