Report on the Group’s business performance and economic situation
Europe/EU
Economic development in Europe was generally subdued in the 2025/26 business year. At the beginning of the reporting period, GDP was virtually stagnant, with the service sector showing slight positive trends, while industrial production remained at a low level. With the turn of the calendar year, economic momentum temporarily picked up somewhat.
The deterioration of international trade relations created additional uncertainty. Following the announcement of “Liberation Day” in April 2025, U.S. tariff policy subsequently led to considerable uncertainty throughout the entire 2025/26 business year. Following intensive negotiations and ultimately a Supreme Court decision that overturned the tariff regulations, the U.S. administration implemented new tariff regulations. However, a 50% tariff on all steel products—including European ones—remained in effect throughout the reporting period.
Toward the end of the 2025/26 business year, geopolitical developments dampened sentiment. The escalation of the conflict in the Middle East and the resulting disruptions in the oil and gas market led to a significant rise in energy prices worldwide and had a negative impact on economic sentiment in Europe.
Overall, the 2025/26 business year was thus characterized by a weak industrial economy, a challenging external economic environment, and geopolitical risks. In this environment, demand in the construction, mechanical engineering, and consumer goods sectors remained consistently weak. The automotive industry presented a mixed picture: demand for high-quality steel sheets remained strong, while demand for automotive components was less than satisfactory throughout the reporting period. Strategic market segments such as railway infrastructure, aerospace, and warehouse and rack solutions performed very well despite the difficult economic situation.
North America/USA
Economic development in North America remained solid overall throughout the 2025/26 business year. Despite a period of intense trade tensions—marked by tariff announcements, their subsequent partial withdrawal, and the ensuing negotiations and the final Supreme Court ruling—the U.S. economy demonstrated robust underlying momentum.
Growth was driven in particular by investments in the technology sector, especially in the field of artificial intelligence (AI), as well as stable private consumption. Outside of the AI boom, however, the construction industry performed much more modestly, and industrial production also remained broadly stable. In the autumn of 2025, the longest government shutdown in U.S. history led to a temporary slowdown in growth, resulting primarily from declining government spending, but ultimately had only a temporary effect. Toward the end of the reporting period, the conflict with Iran also led to significantly higher energy prices in North America and thus to uncertainties in economic development.
At voestalpine’s North American sites, market conditions led to cautious ordering behavior. The Tooling and Automotive Components segments experienced volatility, while shipments of products for the oil and gas industry remained low due to trade restrictions. In contrast, the Aerospace, Railway Systems, and Storage Technology segments recorded strong demand throughout the 2025/26 business year.
South America/Brazil
The Brazilian economy, voestalpine’s most important South American market, lost momentum during the 2025/26 business year. While the service sector, the agricultural sector, and private consumption continued to have a positive impact, high interest rates weighed significantly on industrial production. In addition, increased Chinese imports and limited export opportunities to North America—due to the U.S. tariff regime—had a dampening effect on market development. Although inflation in Brazil fell below 4% toward the end of the 2025/26 business year and the key interest rate (Selic rate) was lowered by 0.25% to 14.75%, the Middle East conflict and the resulting rise in oil prices also led to further uncertainty for the Brazilian economy.
For voestalpine’s Brazilian sites, these developments in the 2025/26 business year resulted in a significant decline in demand in the specialty steel segment. Tubes & Sections also saw a decline in several segments, while Railway Systems maintained stable and strong demand.
Asia/China
The economic environment in China was heavily influenced by trade tensions with the U.S. in the 2025/26 business year. A phase of reciprocal tariffs and export restrictions was only resolved through a stable agreement after extensive negotiations. Following the Supreme Court ruling that took effect in the spring of 2026, the additional tariff regulations led to improved conditions for China compared to other Asian exporting countries.
Overall economic growth remained positive but was driven primarily by strong exports. The domestic economy, however, showed subdued growth and continued to weaken over the course of the 2025/26 business year.
Business performance at voestalpine’s Chinese sites presented a mixed picture: Automotive Components had already been affected by low demand since the beginning of the 2025/26 business year due to intense competition and weakened further during the reporting period in light of cuts to purchase incentives. Demand in the Tubes & Sections segment also increasingly weakened during the 2025/26 business year. Demand for high-quality tool steel remained positive, and Railway Systems also continued to operate in a stable market environment.