According to the company, the “good overall result” is based on “robust strategy and active reorganization”.
voestalpine AG company location in Linz APA/BARBARA GINDL
The steel company voestalpine significantly improved its results in the past 2025/26 financial year, also thanks to restructuring. The company announced on Wednesday that its consolidated profit rose from just under 179 million to 424 million euros compared to the previous year in an overall volatile environment. The reorganization was largely completed, it was said in the annual press conference. The burdensome US tariffs remain for the time being, as does the weak economy.
Sales fell from around 15.7 to 15.1 billion euros. The main reason for the decline of 680 million euros was “significant price declines,” which had an impact of 400 million euros, but were largely compensated for by lower raw material prices, explained CFO Gerald Mayer. Due to the sale of Buderus Edelstahl, a further 250 million euros were missing in sales revenue. 100 million euros were lost due to the unfavorable dollar exchange rate.
According to the group, the restructuring measures that were already started in the 2024/25 financial year were continued. “The focus continued to be on the consistent reorganization of low-profit business areas and on pushing forward international growth projects,” emphasized CEO Herbert Eibensteiner.
The global workforce fell by 1.8 percent to 48,800 employees (full-time equivalents) in the past financial year. “This is of course also due to these reorganization efforts,” said the CEO in today’s online accounting press conference, referring to portfolio adjustments.
“This also led to us closing companies, merging companies, especially in Germany – that has now largely been completed,” reported Eibensteiner. The area is being reorganized. Buderus Edelstahl in Wetzlar was sold. “We have been running a reorganization program at Automotive Components for two years,” added board member Carola Richter, who is responsible for the Metal Forming Division.
In this country, the workforce was reduced, especially at the Styrian locations. “We have carried out a workforce reduction program in Austria, mainly in Styria – we are well advanced there,” said the CEO. Essentially, the dismantling measures there have also been “completed with a few exceptions”.
“In Austria we have cut around 350 employees,” said Eibensteiner. The merger of Böhler Edelstahl (Kapfenberg) and Böhler Bleche (Mürzzuschlag) cost slightly fewer jobs than originally assumed – instead of 115, 104 jobs were eliminated and 18 employees were able to be accommodated in group companies. In Kindberg, a total of 170 employees were laid off – including around 60 from the leasing personnel pool.
At voestalpine Tubulars in Kindberg, a company in the Metal Engineering Division, it was necessary to adjust production to the lower demand, particularly due to the considerable burdens caused by the 50 percent US tariffs in the main sales market, the USA.
The sale of the Lower Austrian subsidiary voestalpine Böhler Profil also reduced the number of employees. The company and its 150 employees went to the US group Kadant. “We are concentrating on our core business,” noted CEO Reinhard Nöbauer, who heads the High Performance Metals division.
The bottom line is that all relevant earnings categories – supported by a robust strategy and active reorganization – developed positively in 2025/26, the group announced. The dividend is to be increased from 60 to 75 cents per share.
For the 2026/27 financial year, management expects earnings before interest, taxes, depreciation and amortization (EBITDA) in a range of EUR 1.60 to 1.85 billion, i.e. further growth. Eibensteiner also expects “positive effects from the reorganization measures”.
In the past financial year, EBITDA rose from 1.3 to 1.5 billion euros. According to the CFO, the US tariffs of 50 percent on steel that have been in effect since June 4, 2025 burdened the result by almost 100 million euros.
“We are of course still in these difficult conditions – there is no improvement in tariffs and the war in the Middle East will cause a further deterioration in economic development,” said Eibensteiner. “The whole world is affected by the Iran war.”
Thank God there are no gas availability problems in Europe, but the high energy prices have to be passed on to customers. “We are prepared for energy prices to continue to rise and with them inflation.” voestalpine has increased logistics costs and that too “can of course be implemented on the market”. (APA)
