Financial key performance indicators

The Metal Engineering Division can look back on an overall stable revenue trend in the business year 2023/24. Revenue increased slightly by 0.6% from EUR 4,289.2 million to EUR 4,315.7 million in the reporting period. The business and product segments presented a varied picture: The Railway Systems business segment benefited from the improved price level and the stable, good delivery volumes for rails. In addition, the business volume for turnout systems was expanded. The situation was different in the Industrial Systems business, where sales declined. The Wire Technology product segment in particular struggled with the difficult market environment over the course of the business year 2023/24. Prices for seamless tubes (Tubulars product segment) remained high, although volumes were slightly below the previous year’s level.

The Metal Engineering Division’s results developed positively in the business year 2023/24. After individual key figures had already set historic records in the previous year, they were again slightly exceeded in the current reporting period. EBITDA recorded an increase of 3.5%, rising from EUR 585.9 million (margin of 13.7%) to EUR 606.2 million (margin of 14.0%). This growth was driven by the Railway Systems business segment. The situation in the Industrial Systems business segment was mixed. The Tubulars product segment continued to perform very well in the business year 2023/24, with earnings only moderately below the excellent level of the previous year. The Welding product segment reported slight growth, while the Wire Technology product segment was confronted with a declining earnings situation. EBIT improved by 5.9% in the business year 2023/24, from EUR 404.0 million (margin of 9.4%) to EUR 427.7 million (margin of 9.9%).

In a direct comparison of the third and fourth business quarters of 2023/24, revenue increased by 4.7% from EUR 1,026.3 million to EUR 1,074.7 million. In contrast to the previous year, revenue in the Railway Systems business segment decreased, while it increased in the Industrial Systems business segment thanks to higher volumes for wire and seamless tube deliveries. On the earnings side, the Metal Engineering Division also benefited quarter-on-quarter from the positive development of the Industrial Systems business segment, where the Wire Technology, Tubulars, and Welding product segments improved. EBITDA thus increased by 27.1% from EUR 128.1 million (margin of 12.5%) to EUR 162.8 million (margin of 15.1%) in Q4 2023/24. EBIT increased from EUR 86.9 million (margin of 8.5%) to EUR 117.8 million (margin of 11.0%). This corresponds to an increase of 35.6%.

As of March 31, 2024, the number of employees (FTE) in the Metal Engineering Division was 14,724, up 4.8% on the previous year’s figure of 14,053. The increase was primarily in the Turnout Systems product segment, partly due to the expansion of business activities in North America. However, the Tubulars product segment also increased its headcount due to investment in production facilities for the manufacture of seamless hollow sections.