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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 momentum is fueled by its exposure to long-term infrastructure spending and reshoring trends. The company's industrial and materials segment is poised to benefit from these macroeconomic shifts. Recent earnings have likely underscored the company's growth prospects, with investors refocusing on its potential. A 'Fast-Paced Momentum at a Bargain' screen highlight, according to recent analysis, suggests the company's valuation remains reasonable despite its strong growth trajectory.

1.c. Company Highlights

2. Voestalpine's Q1-Q3 Earnings: A Resilient Performance Amidst Challenging Market Conditions

Voestalpine's revenues declined by EUR 600 million, primarily due to lower prices and a weaker US dollar, but the company reported a positive EBITDA of EUR 30 million and an EBIT of EUR 80 million, up from the previous year. The earnings per share (EPS) came in at EUR 0.35, below analyst estimates of EUR 0.639. The company's gross margin decreased by EUR 137 million, mainly due to higher tariffs in the tubulars business. "Our profit before tax is significantly up, mainly due to lower net debt and lower interest rates," as noted by CFO Gerald Mayer, highlighting the company's strong financial position.

Publication Date: Feb -15

📋 Highlights
  • Financial Performance:: Revenue declined EUR 600M YoY, but EBITDA rose EUR 30M (up 3.5%) and EBIT surged EUR 80M (up 9.5%) due to cost efficiencies and higher volumes.
  • Divisional Highlights:: Steel division delivered strong results with EUR 80M EBIT growth, while Metal Engineering lost EUR 79M YoY due to U.S. tariffs and lower rig counts in Tubulars.
  • Strategic Progress:: HPM restructuring on track, with 80% utilization achieved; expects EUR 2B EBITDA target in 2–3 years post-HPM turnaround and market recovery.
  • Market Exposure:: Railway infrastructure and aerospace demand remain robust (85% order backlog), but mechanical engineering and automotive sectors face stable low demand and mixed performance.
  • Cash Flow & Guidance:: Operating cash flow reached EUR 873M (up 25% YoY), with EBITDA guidance maintained at EUR 1.4–1.55B, and EUR 180M CO2 certificate costs expected in Q4.

Segmental Performance

The Steel division reported a strong performance, driven by high demand from the automotive industry. The High Performance Metals division faced a weaker economy and uncertain market conditions, but the Aerospace division saw strong development in Europe. The Metal Engineering division reported a mixed performance, with Railway Systems and Industrial Systems showing good development, while Tubulars and Wire showed weaker performance due to US tariffs.

Cash Flow and Balance Sheet

Voestalpine generated a cash flow from operations of EUR 873 million and reported a net debt reduction of EUR 200 million since the beginning of the year, with a gearing ratio of 1.0. The company's investing activities remained at the same level as last year, and it stuck to its guidance of EUR 1.1 billion for the full year.

Valuation and Outlook

With a P/E Ratio of 40.88 and an EV/EBITDA of 13.28, the market appears to be pricing in a certain level of growth and profitability for Voestalpine. Analysts estimate revenue growth of 3.9% for next year. The company's guidance for EBITDA remains between EUR 1.4 billion and EUR 1.55 billion, with the upper end of the range more likely if it closes the sale of one of its companies in HPM. Voestalpine is cautiously optimistic about the potential reform of the ETS system, which could lead to more free allocations for industrial players, and expects to reach a EUR 2 billion EBITDA profile in the next couple of years.

Dividend Policy and Capital Allocation

Voestalpine aims to deliver its previously announced dividend policy and balance sheet targets, with a dividend yield of 1.34%. The company's capital allocation policy remains unchanged, with a focus on deleveraging its balance sheet and maintaining a stable dividend payout.

3. NewsRoom

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Is It Too Late To Consider Voestalpine (WBAG:VOE) After Its 113% One-Year Surge?

Feb -15

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voestalpine AG (VLPNY) Q3 2026 Earnings Call Highlights: Navigating Challenges with Strategic ...

Feb -14

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Has Voestalpine’s 108.7% Rally in 2025 Left Further Upside for Investors?

Dec -08

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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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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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Titan Cement

A-Score: 6.6/10

Value: 5.5

Growth: 8.2

Quality: 6.2

Yield: 6.9

Momentum: 6.0

Volatility: 6.7

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SSAB

A-Score: 6.2/10

Value: 7.8

Growth: 5.8

Quality: 4.5

Yield: 8.1

Momentum: 7.5

Volatility: 3.3

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Acerinox

A-Score: 5.9/10

Value: 5.3

Growth: 4.4

Quality: 3.0

Yield: 8.1

Momentum: 7.5

Volatility: 7.0

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Vallourec

A-Score: 5.4/10

Value: 7.3

Growth: 3.8

Quality: 6.6

Yield: 5.0

Momentum: 4.0

Volatility: 5.7

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Voestalpine

A-Score: 4.8/10

Value: 6.1

Growth: 1.3

Quality: 3.2

Yield: 4.4

Momentum: 9.0

Volatility: 4.7

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CMC

A-Score: 4.2/10

Value: 3.6

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 5.0

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

47.18$

Current Price

47.18$

Potential

-0.00%

Expected Cash-Flows