Austrian steelmaker Voestalpine reported a sharp decline in net profit for the first three quarters of FY25, ending December 31, 2024.
Profit after tax dropped to EUR 207 mln (USD 214 mln), down from EUR 415 mln in 9M FY24. Revenue fell 5.2pct YoY to EUR 11.7 bln (USD 12 bln), while EBITDA declined 23.6pct YoY to EUR 968 mln (USD 999.5 mln).
The company cited a challenging economic environment, particularly in Europe. However, its global reach and industry diversification helped sustain demand for high-tech products. The railway infrastructure segment performed well, and aerospace maintained its upward trend. While energy sector consumption declined, demand for Voestalpine Steel Division’s products in this market remained strong. The storage systems business also saw continued demand for automated high-bay warehouses. In contrast, consumer goods, construction, and mechanical engineering industries remained weak, and the European automotive sector slowed further.
In response to market challenges, Voestalpine launched a reorganization program for its Automotive Components unit, particularly in Germany. The company also completed the sale of Buderus Edelstahl in January, refocusing its High Performance Metals Division on advanced materials.
For FY25, Voestalpine expects EBITDA of around EUR 1.3 bln (USD 1.34 bln), slightly below its previous forecast of EUR 1.4 bln (USD 1.44 bln).
1 USD / 0.96 EUR
