Voestalpine maintains FY26 EBITDA guidance despite US tariffs

Investing.com -- Voestalpine (LON:0MKX) AG (VIE:VOE) on Thursday maintained its full-year EBITDA guidance of €1.4-1.55 billion for fiscal year 2026 despite macroeconomic uncertainty and the impact of 50% US tariffs.

The Austrian steel and technology group expects the US tariffs to have a negative impact of €60-80 million but anticipates improvements in the second half from restructuring efforts and improved sentiment in Europe.

The company’s capital expenditure guidance remains at €1.15 billion, while free cash flow is expected to reach €0.4-0.5 billion, supported by disciplined working capital management.

Voestalpine’s end-market outlook shows mixed conditions across its business segments. Construction (10% of sales), mechanical engineering (8%), and consumer goods (4%) are expected to remain stable at low levels with potential upside in the second half.

The automotive sector, which represents 30% of sales, continues to show stability.

Positive momentum is evident in railway systems (15% of sales), aerospace (3%), and warehouse technologies, all benefiting from robust order books and long-term visibility.

The company’s steel division, accounting for 35% of revenue, is experiencing relatively solid demand in automotive and energy sectors compared to peers. European steel prices appear to have reached bottom, with signs of forward buying ahead of regulatory changes.

In the high-performance metal segment (20% of revenue), the company faces weak European tool steel markets, while China remains the strongest region. Aerospace, medical, and mining segments show solid demand. The division’s restructuring program focuses on cost reduction and supply chain simplification, with fiscal year 2025/26 EBITDA expected around €250 million.

The metal engineering division (25% of revenue) shows a positive outlook for railway systems, which represents more than 50% of divisional profits. This segment has full bookings for 2025 and strong visibility into 2026. However, the seamless tubes business has slowed due to weaker US demand and tariffs.

In the metal forming division (20% of revenue), reorganization of automotive components is underway with benefits expected to materialize in fiscal year 2026. Order intake is improving in trucks and trailers, particularly from German customers.

Voestalpine’s stock is currently trading at €24.84, with Jefferies analysts setting a price target of €27.00, representing a 9% upside potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.