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Investing.com -- voestalpine stock gained 1.5% after the Austrian steelmaker outlined ambitious financial targets that suggest potential upside to analyst estimates.
The company is targeting a return on capital employed (ROCE) of more than 12%, significantly higher than the 5.4% achieved in fiscal year 2024 and the 4.4% expected for fiscal year 2025. Additionally, voestalpine aims for an EBIT margin of 9% compared to recent figures of 3.4% and projected 2.9%, along with an EBITDA margin of 14% versus current levels of 10% and expected 8.6%.
Based on these targets and consensus revenue projections of €16 billion for fiscal year 2028, voestalpine could achieve an EBITDA of approximately €2.2 billion. This figure would exceed current consensus estimates of €1.8 billion for that period.
The company’s capital allocation strategy balances investments in steel production with portfolio development initiatives.
Steel production investments will focus on decarbonization, technological leadership, and process optimization, while portfolio development will involve selective mergers and acquisitions along with restructuring efforts to improve efficiency and strategic focus.
Market observers note that this strategy doesn’t necessarily signal a major shift toward acquisitions at this stage, as details regarding the size and return thresholds for potential deals remain unclear.
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