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1. Company Snapshot

1.a. Company Description

Voestalpine AG processes, develops, manufactures, and sells steel products in Austria, European Union, and internationally.The company operates through five segments: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Other.The Steel division produces hot and cold-rolled steel strips, as well as electrogalvanized, hot-dip galvanized, and organically coated steel strips; and heavy plates for the energy sector, as well as turbine casings for automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others.


The High Performance Metals segment offers special alloys for the oil and natural gas, aerospace, and energy engineering industries; tool manufacturing, component processing, heat treatment, and coating services; and warehousing and preprocessing of special steels, as well as services, including logistics, distribution, and processing for the oil and natural gas industries for automotive, white goods/consumer goods, building/construction, aerospace, mechanical engineering, and others.The Metal Engineering division offers rails and turnout products, rod and drawn wires, seamless tubes, and welding consumables and machinery; rails and digital monitoring systems; and services for rail infrastructure.This segment serves railway systems, automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others.


The Metal Forming division manufactures special tubes and sections, and precision strip steel products, as well as pre-finished system components made from pressed, stamped, and roll-profiled parts for use in automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others.The company is headquartered in Linz, Austria.

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1.b. Last Insights on VOE

Voestalpine's recent momentum is driven by its fast-paced movement and reasonable price, making it an attractive choice for bargain hunters. The company's presence in the Basic Materials sector has drawn attention, with recent Market Talks covering the industry. Analyst sentiment has also shifted, with a modest boost in consensus analyst price target, reaching €30.32 from a previous €29.57. This evolution in sentiment reflects a more optimistic outlook on the company's prospects.

1.c. Company Highlights

2. Voestalpine's H1 Results: Solid Performance Amidst Challenges

Voestalpine reported revenues of EUR 7.6 billion for the first half of the 2025-'26 business year, a decline of 5.6% or EUR 450 million compared to the same period last year. Despite this, the company's profit before tax improved to EUR 278 million from EUR 248 million. Earnings per share (EPS) came in at EUR 0.55, significantly beating estimates of EUR 0.09607. The company's margins have improved due to lower revenues and increased result levels, with the High Performance Metals Division achieving stronger contributions. As noted by Gerald Mayer, "our margins have improved due to lower revenues and increased result levels."

Publication Date: Nov -14

📋 Highlights
  • Revenue Decline: Revenues fell by EUR 450 million (5.6%) compared to the first half of last year.
  • Profit Before Tax: Increased to EUR 278 million from EUR 248 million in the prior year.
  • Cash Flow Growth: Cash flow from operating activities rose to EUR 783 million (vs. EUR 346 million last year), driven by working capital reductions.
  • EBITDA Guidance: Maintained guidance of EUR 1.4 billion to EUR 1.55 billion for the year, despite U.S. tariffs and market challenges.

Segment Performance

The Steel Division had a strong performance, with high utilization, good orders, and projects in the heavy plate business. The High Performance Metals Division faced lower demand but is on track with reorganization and efficiency measures. The Metal Forming Division was affected by lower car production, but reorganization projects are in execution. The divisions' performances were mixed, but the company remains optimistic about the outlook.

Cash Flow and Balance Sheet

Voestalpine generated a cash flow from results of EUR 687 million, compared to EUR 481 million last year. The company has managed to release more than EUR 500 million of its net working capital in the last 12 months. Cash flow from operating activities is EUR 783 million, compared to EUR 346 million last year. The company's equity base is solid, with an equity ratio of 49% and a gearing ratio of 20%.

Outlook and Valuation

The outlook for the rest of the year is uncertain due to U.S. tariffs and weak economies in Europe. Despite this, the company expects positive results in High Performance Metals and Metal Forming by the end of the year. Analysts estimate next year's revenue growth at -4.3%. Voestalpine's current valuation metrics include a P/E Ratio of 245.26, P/B Ratio of 4.01, and EV/EBITDA of 6.37. The company's dividend yield is 1.75%, and the free cash flow yield is 8.77%. These metrics suggest that the market is pricing in a relatively high level of earnings growth, but the company's solid balance sheet and cash flow generation provide a foundation for potential upside.

3. NewsRoom

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Here Is Why Bargain Hunters Would Love Fast-paced Mover Voestalpine (VLPNY)

Nov -26

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Basic Materials Roundup: Market Talk

Nov -12

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Basic Materials Roundup: Market Talk

Nov -12

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Basic Materials Roundup: Market Talk

Oct -08

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Why The Narrative Around Voestalpine Is Shifting After Recent Analyst Upgrades

Oct -07

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EU to Ramp-Up Tariffs on Steel Imports, Mirroring US Duties

Oct -01

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Steel

Expected Growth: 4.83%

Voestalpine AG's 4.83% growth in steel segment is driven by increasing demand from automotive and construction industries, coupled with the company's focus on high-margin specialty steel products and cost-saving initiatives. Additionally, strategic acquisitions and expansion into emerging markets have contributed to the growth.

Metal Engineering

Expected Growth: 4.6%

Voestalpine AG's Metal Engineering segment growth of 4.6% is driven by increasing demand for high-quality steel products in the automotive and construction industries, coupled with the company's strategic expansion into emerging markets and continuous investments in research and development to improve product offerings and manufacturing efficiency.

Metal Forming

Expected Growth: 4.65%

Voestalpine AG's Metal Forming segment growth of 4.65% is driven by increasing demand for lightweight automotive components, rising electrification of vehicles, and growing aerospace industry. Additionally, the company's focus on innovation, cost savings initiatives, and strategic acquisitions have contributed to the segment's growth.

High Performance Metals

Expected Growth: 4.83%

Voestalpine AG's High Performance Metals segment growth of 4.83% is driven by increasing demand for high-strength, lightweight materials in the aerospace and automotive industries, coupled with the company's strategic expansion into emerging markets and continuous R&D investments in innovative products and processes.

Other

Expected Growth: 4.65%

Voestalpine AG's 4.65% growth in 'Other' segment is driven by increasing demand for high-performance materials in the aerospace and automotive industries, coupled with strategic acquisitions and expansion into emerging markets, resulting in higher sales volumes and improved pricing power.

7. Detailed Products

Railway Systems

Railway systems and infrastructure solutions for railway operators and industry partners

Special Steel

High-quality steel products for the automotive, construction, and engineering industries

Metal Engineering

High-tech components and systems for the automotive, aerospace, and industrial sectors

Metal Forming

High-precision metal components and assemblies for the automotive, aerospace, and industrial sectors

High-Performance Metals

Specialty metals and alloys for the aerospace, automotive, and industrial sectors

8. Voestalpine AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Voestalpine AG is medium due to the availability of alternative materials and technologies in the steel industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on raw materials and the presence of few large suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the steel industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the steel industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.45%
Debt Cost 8.33%
Equity Weight 71.55%
Equity Cost 10.87%
WACC 10.15%
Leverage 39.76%

11. Quality Control: Voestalpine AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

Volatility: 6.7

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SSAB

A-Score: 6.4/10

Value: 8.5

Growth: 5.8

Quality: 4.4

Yield: 8.8

Momentum: 7.5

Volatility: 3.3

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A-Score: 5.9/10

Value: 5.8

Growth: 4.4

Quality: 2.9

Yield: 8.1

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A-Score: 5.7/10

Value: 7.4

Growth: 3.9

Quality: 6.2

Yield: 5.0

Momentum: 6.5

Volatility: 5.0

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Voestalpine

A-Score: 4.8/10

Value: 5.2

Growth: 1.3

Quality: 3.2

Yield: 5.0

Momentum: 9.0

Volatility: 5.3

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CMC

A-Score: 4.4/10

Value: 3.9

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 6.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.84$

Current Price

37.84$

Potential

-0.00%

Expected Cash-Flows