Austrian steel manufacturer Voestalpine's third-quarter EBITDA fell short of expectations, stock price up 1.1%

LootboxPhobia · 2026-02-11T09:54:47+00:00

Fortsta Steel's adjusted EBITDA for Q3 was €315 million, below expectations, yet the stock still rose by 1.1%. The underwhelming profit was mainly due to weak performance in the high-performance metals and engineering divisions, as well as reduced sales from automotive customers' production halts. Earnings per share were €0.35, below expectations. Free cash flow performed strongly, with net debt decreasing. The company maintained its FY2026 EBITDA guidance and slightly raised its free cash flow outlook. Market-wise, sectors such as engineering and construction remain stable, while the automotive sector continues to be weak.

LootboxPhobia

2026-02-11 09:54:47

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Investing.com – Austrian steel manufacturer Voestalpine reported third-quarter adjusted EBITDA of €315 million, 5% below the company’s consensus estimate of €331 million.

Despite missing earnings expectations, the company’s stock rose 1.1% after the announcement.

The shortfall was mainly due to weaker performance in the High-Performance Metals (HPM) and Engineering divisions, which the company attributed to seasonal factors and the impact of cold winter conditions on its rail business. There was also some slowdown in the wire and tube sectors.

These weaker results were partially offset by better performance in the Steel division and other offsetting items. However, the Steel division faced challenges from automaker customers halting production early; despite strong raw steel output in Q2, these shutdowns negatively affected sales. The company also experienced some negative product mix effects in its composite panels.

Earnings per share were €0.35, below the consensus estimate of €0.42.

Free cash flow was particularly strong at €72 million, benefiting from working capital releases. The company explained that lower shipment volumes and early customer shutdowns helped limit accounts receivable. Net debt decreased from €1.47 billion in Q2 to €1.42 billion.

Voestalpine maintained its full-year EBITDA guidance for fiscal 2026 of €1.4 billion to €1.55 billion, implying fourth-quarter EBITDA of €362 million to €512 million, compared to the consensus of €423 million.

The company slightly raised its free cash flow guidance to €350 million to €400 million, up from approximately €350 million. Management expects further working capital releases in Q4, though this will be offset by higher capital expenditure cash outflows.

Regarding market conditions, Voestalpine reported that the engineering, construction, and consumer sectors remain stable, while energy, railway, aerospace, and storage sectors continue to perform strongly. The automotive sector remains relatively weak. The company noted that improvements related to EU protectionism may impact fiscal 2027 rather than the current year.

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