voestalpine Group results Q1 2026/27 Linz and Donawitz; EUR 100 million net one-time effects
Q&A voestalpine Group results Q1 BY 2026/27
Q.) Were there any one-off effects in the Q1 2026/27 results? A.) Earnings performance of High Performance Metals Division was significantly positively influenced by the sale of voestalpine BÖHLER Profil. Continued reorganization measures reduced the division’s EBITDA. This resulted in total in approximately EUR 100 million net positive one-time effects.
Q.) What is the status of your decarbonization projects? A.) The greensteel projects in Linz and Donawitz are unchanged on time and on budget. We continuously expect that the first two electric arc furnaces in Linz and Donawitz will start the ramp-up phase in the first half of CY 2027.
Q.) Why did you accelerate your decarbonization plan in Donawitz? A.) The implementation of the second expansion phase will enable the site’s extensive decarbonization by 2030. Phase 2 in Donawitz is a capital-light capex program amounting to c. EUR 100 million. Bringing this step forward is driven by both demand and cost considerations and supports the site’s further development toward a minimill concept.
Q.) You could substantially decrease net financial result in Q1 2026/27 compared to previous quarters. What is your expectation for the development for the full BY 2026/27? A.) Net financial result reached EUR -28 million in Q1 2026/27, marking a historically low level. For BY 2026/27 we expect a net financial result of c. EUR -140 million.
Q.) What was the change in working capital and free cash flow development in Q1 BY 2026/27? A.) We released working capital by EUR 44 million and generated free cash flow of EUR 224 million.
Q.) What is your free cash flow expectation for BY 2026/27? A.) We expect free cash flow to come in at c. EUR 250 million BY 2026/27. It includes roughly EUR 150 million cash inflow from the sale of BÖHLER Profil and peak CAPEX from greensteel projects.
Q.) What net working capital and capex assumptions are included in your free cash flow guidance for BY 2026/27? A.) Our free cash flow guidance is based on broadly stable net working capital levels. Cash flow from investing activities is expected to amount to approximately EUR -1,150 million, which includes c. EUR -400 million peak CAPEX from greensteel projects.
Q.) What does the EBITDA guidance of between EUR 1.6 and 1.85 billion comprise? A.) In an environment of high geopolitical and economic uncertainties it includes the continuation of the current market trends as well as positive effects from the implementation of internal measures and supporting regulatory framework (CBAM, EU’s new safeguard measures). Furthermore, it contains positive one-off effects of c. EUR 100 million, largely from the sale of BÖHLER Profil.
Q.) What is voestalpine’s exposure to the Middle East, and how is the ongoing conflict affecting the Group? A.) Revenue exposure to the affected countries in the Middle East accounts for approx. 1% of Group revenue. The conflict has resulted in the postponement of energy-related projects.
Q.) How will the Rail Baltica contract (EUR 470 million) contribute to the performance of Railway Systems, and over what period will it support capacity utilization? A.) Deliveries under the Rail Baltica framework agreements are going to start in the current business year. The contract will support long-term capacity utilization in Railway Systems through 2035.