voestalpine posts sharp rise in first quarter and lifts outlook

Group CEO Herbert Eibensteiner spoke of a solid start to the new financial year. Capacity utilization at the plants in Linz and Donawitz is high, and the international sites, particularly in Canada, are also developing positively. Order books have filled significantly against the backdrop of European investment programs in rail infrastructure.

Railway Systems as the driver

According to the company, the main driver was the Railway Systems division, which supplies rails, turnouts, and complete systems for high-speed traffic. The steel segment based in Donawitz also benefited from rising demand from the European automotive and mechanical engineering industries. The energy transition and the associated need for special steels generated additional orders.

In view of the positive development, voestalpine's management has raised its earnings guidance for the full 2026/27 year. Eibensteiner expressed confidence in reaching the adjusted targets, but at the same time warned of potential burdens from the economic cooling in Europe and from energy cost trends.

Raised full-year outlook

For the remainder of the year, the group expects stable demand for high-quality steels and components for rail traffic. The pipeline of major projects, including the Rail Baltica high-performance line and several tunnel projects in Canada, is well filled, it said.

In addition to its classic steel business, voestalpine sees growing opportunities in hydrogen technology and in low-CO2 production processes. At the Linz site, trial runs are underway to convert blast furnaces to green hydrogen, according to the company. Eibensteiner described the area as a strategic future field that should make a relevant earnings contribution in the medium term.

Stock market reacts positively

The stock market reacted positively to the quarterly figures. voestalpine shares rose significantly on Wednesday morning and were among the strongest performers in the Vienna leading index ATX. Analysts saw the raised outlook as confirmation of recent recovery trends in the European steel sector.

Risks in the further course of the year

Looking ahead to the second half of the year, management pointed to possible risks: the economy in Europe has recently shown itself to be more vulnerable, energy and raw material costs remain a factor of uncertainty, and the development of the automotive industry as an important customer is being closely monitored. Nevertheless, the order situation is as good as it has been for several quarters.

voestalpine employs around 50,000 people worldwide and is one of the largest steel producers in Europe. The company supplies industries ranging from automotive and mechanical engineering to aerospace. With the now raised outlook, the group underlines its ambition to actively help shape the transformation of the European steel industry.