Financial key performance indicators

Following the very strong performance in the previous year, the Metal Engineering Division recorded declines in its financial performance indicators in the 2024/25 business year. Revenue decreased by 3.4%, from EUR 4,315.7 million in 2023/24 to EUR 4,167.9 million in the 2024/25 business year. The individual business segments and product segments showed varying trends. The Railway Systems business segment was able to increase revenue year-on-year, with a significant contribution coming from the turnout systems product segment, which expanded its overall business volume. In contrast, the Industrial Systems business segment recorded a decline in revenue. Slowing momentum in the tubulars product segment and challenging market conditions in wire technology led to lower prices and volumes in the shipping of seamless tubes and wire products, respectively. A similar picture emerged in terms of sales revenue. While the Railway Systems business segment improved its operating result (EBITDA) year-on-year, the EBITDA trend in Industrial Systems showed a downward trajectory despite cost-cutting measures. The operating contribution from the tubulars product segment declined during the reporting period due to lower demand for seamless tubes for oil and gas exploration. Overall, the EBITDA of the Metal Engineering Division fell by 23.9%, from EUR 606.2 million (margin of 14.0%) in the 2023/24 business year to EUR 461.1 million (margin of 11.1%) in 2024/25. EBIT (operating profit) declined by 36.1% over the same period, from EUR 427.7 million (margin of 9.9%) to EUR 273.5 million (margin of 6.6%).

In a direct quarterly comparison between Q3 and Q4 of 2024/25, the revenue level of the Metal Engineering Division remained nearly stable, while earnings improved. Revenue in Q4 stood at EUR 990.0 million, essentially unchanged from the previous quarter’s figure of EUR 996.5 million. Slightly weaker revenue in the Railway Systems business segment was offset by a revenue increase in the Industrial Systems business segment. The division succeeded in increasing EBITDA by 18.3%, from EUR 95.5 million (margin of 9.6%) in Q3 to EUR 113.0 million (margin of 11.4%) in Q4 of 2024/25. In a direct quarter-on-quarter comparison, the Industrial Systems business segment was able to improve its operational performance. This was driven primarily by a significant improvement in earnings in the welding product segment. The wire technology segment also saw a quarter-on-quarter improvement in EBITDA. EBIT for the division reached EUR 63.9 million in Q4 2024/25 (margin of 6.5%), which was an increase of 30.4% compared with EUR 49.0 million (margin of 4.9%) in Q3 2024/25.

As of March 31, 2024, the Metal Engineering Division employed 15,071 people (FTEs), representing an increase of 2.4% compared with the same date in the previous financial year (14,724). This rise is primarily due to the acquisitions of welding wire manufacturer Italfil S.p.A. in the welding product segment and the production facilities of Wabtec Components LLC through an asset deal in the turnout systems product segment.