D.2. Operating segments

D.2. Operating segments

The voestalpine Group has five reportable segments: Steel Division, High Performance Metals Division, Metal Engineering Division, Metal Forming Division, and Holding & Group Services. The reporting system is primarily based on the nature of the products provided and reflects the internal financial reporting system, the management structure, and the company’s main sources of risks and rewards.

The Steel Division focuses on the production of sophisticated hot and cold-rolled strip steel, as well as electrogalvanized, hot-dip galvanized, and organically coated strip steel. This is augmented by electrical steel strip, heavy plate, and foundry products, as well as the downstream Steel & Service Center and Logistics Services. The division is the first point of contact for renowned automotive manufacturers and suppliers in strategic product development and supports customers worldwide. Moreover, it is a key partner of the European white goods and mechanical engineering industries. The Steel Division produces heavy plates for use in the energy sector under the most demanding conditions.

The High Performance Metals Division is the global market leader in high alloy tool and high-speed steel. It holds a leading position in the global supply of special alloys for the oil and natural gas, aerospace, and energy engineering industries; utilizing nickel-base and titanium alloys as well. The division operates a global network of service centers for customers focused on tool manufacturing, offering services such as component processing, heat treatment, and coating, alongside warehousing and preprocessing of special steels. In the USA, Germany, Great Britain, China, and Singapore, the division also provides a broad range of services, including logistics, distribution, and processing for the aerospace industry as well as the oil and natural gas industries. For the oil and gas industry, these services are complemented by additional processing steps. This underscores the division’s position as a technology leader through the one-stop-shop solutions it offers its customers.

The Group’s expertise as the world market leader in turnout technology and as the leading provider of high-quality rails and digital monitoring systems, as well as services related to rail infrastructure, is brought together in the Metal Engineering Division. In addition, the division offers a broad range of high-quality wire rod and drawn wire, premium seamless tubes for special applications as well as high-quality welding consumables and welding machinery. The Metal Engineering Division also operates its own steel production, which ensures a reliable supply of ultra high-quality pre-materials throughout its operations.

The Metal Forming Division is voestalpine’s center of competence for highly refined special sections, tubes, and precision strip steel products, pre-finished system components made from pressed, punched, and roll-profiled parts, as well as storage system solutions. This combination of materials expertise and processing competence — unmatched in the industry — and the division’s global presence make it the first choice for customers who value innovation and quality. These customers include leading manufacturers in the automotive manufactoring and supply industries, with a significant focus on the premium segment, as well as numerous companies in the commercial vehicle, construction, storage, energy, and (agricultural) machinery sectors.

In addition to the holding company, the business segment Holding & Group Services also comprises two holding companies for the U.S. tax group, two financing entities, one raw materials purchasing company, one personal services entity as well as the group-IT companies. These companies were combined because their focus is on providing coordination services and support to the subsidiaries.

Segment revenue, segment expenses, and segment results include transfers between the operating segments. Such transfers are accounted for at transfer prices that correspond to competitive market prices charged to third-party customers for similar products. The intersegment transactions are eliminated in the Consolidated Financial Statements.

The voestalpine Group uses earnings before interest and taxes (EBIT) as well as earnings before interest, taxes, depreciation, and amortization (EBITDA) as key performance indicators (KPIs) for measuring segment performance. These key figures are generally accepted indicators for measuring profitability within the Group.

The key figures for the Group’s operating segments are as follows:

Operating segments

2024/25

 

Steel Division

 

High Performance Metals Division

 

Metal Engineering Division

 

Metal Forming Division

 

Holding & Group Services

 

Reconciliation

 

Total Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment revenue

 

5,799.1

 

3,182.2

 

4,167.9

 

3,125.1

 

1,012.4

 

−1,543.0

 

15,743.7

Of which revenue with third parties

 

5,364.3

 

3,160.1

 

4,126.6

 

3,089.1

 

3.6

 

0.0

 

15,743.7

Of which revenue with other segments

 

434.8

 

22.1

 

41.3

 

36.0

 

1,008.8

 

−1,543.0

 

0.0

Cost of sales

 

4,755.8

 

2,685.7

 

3,270.8

 

2,656.9

 

988.8

 

−1,452.5

 

12,905.5

EBITDA

 

743.8

 

83.0

 

461.1

 

169.3

 

−111.7

 

0.9

 

1,346.4

EBITDA margin

 

12.8%

 

2.6%

 

11.1%

 

5.4%

 

 

 

 

 

8.6%

Depreciation and amortization of property, plant and equipment and intangible assets

 

265.0

 

239.7

 

187.6

 

184.5

 

14.6

 

0.0

 

891.4

Of which impairment

 

0.2

 

86.2

 

0.0

 

41.6

 

0.0

 

0.0

 

128.0

Reversal of impairment of property, plant and equipment and intangible assets

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Share of profit of entities consolidated according to the equity method

 

2.3

 

0.0

 

0.7

 

0.0

 

0.0

 

2.9

 

5.9

EBIT

 

478.8

 

−156.8

 

273.5

 

−15.3

 

−126.0

 

0.9

 

455.1

EBIT margin

 

8.3%

 

−4.9%

 

6.6%

 

−0.5%

 

 

 

 

 

2.9%

Interest and similar income and income from other securities and loans

 

7.8

 

27.5

 

13.8

 

9.6

 

379.4

 

−388.7

 

49.4

Interest and similar expenses

 

96.7

 

134.2

 

80.6

 

64.7

 

254.5

 

−390.6

 

240.1

Tax expense

 

−72.8

 

16.0

 

−35.2

 

25.8

 

−25.61

 

−0.11

 

−91.9

Profit after tax

 

321.3

 

−247.1

 

171.5

 

−44.5

 

293.51

 

−316.11

 

178.6

Segment assets

 

5,241.9

 

4,012.3

 

4,183.0

 

2,495.7

 

10,842.11

 

−11,040.71

 

15,734.3

Of which investments in entities consolidated according to the equity method

 

213.8

 

0.0

 

5.4

 

0.0

 

0.0

 

35.5

 

254.7

Net financial debt

 

1,288.6

 

1,866.2

 

1,084.4

 

981.2

 

−3,494.61

 

−75.81

 

1,650.0

Investments in property, plant and equipment and intangible assets

 

535.0

 

126.1

 

381.9

 

174.9

 

25.2

 

0.0

 

1,243.1

Employees (full-time equivalent)

 

10,675

 

11,679

 

15,071

 

10,899

 

1,335

 

0

 

49,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1
Adjustment to the presentation of intra-Group loss allowances in line with changes in the presentation of internal reporting.

 

 

 

 

In millions of euros

Operating segments

2025/26

 

Steel Division

 

High Performance Metals Division

 

Metal Engineering Division

 

Metal Forming Division

 

Holding & Group Services

 

Reconciliation

 

Total Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment revenue

 

5,730.6

 

2,749.7

 

4,054.7

 

3,030.1

 

944.2

 

−1,446.2

 

15,063.1

Of which revenue with third parties

 

5,316.8

 

2,730.5

 

4,013.6

 

2,999.5

 

2.7

 

0.0

 

15,063.1

Of which revenue with other segments

 

413.8

 

19.2

 

41.1

 

30.6

 

941.5

 

−1,446.2

 

0.0

Cost of sales

 

4,605.6

 

2,170.3

 

3,152.5

 

2,540.5

 

928.5

 

−1,349.2

 

12,048.2

EBITDA

 

810.5

 

216.2

 

374.5

 

218.1

 

−129.5

 

−4.2

 

1,485.6

EBITDA margin

 

14.1%

 

7.9%

 

9.2%

 

7.2%

 

 

 

 

 

9.9%

Depreciation and amortization of property, plant and equipment and intangible assets

 

251.4

 

158.9

 

190.6

 

144.6

 

16.6

 

0.0

 

762.1

Of which impairment

 

0.0

 

6.7

 

0.0

 

5.3

 

0.0

 

0.0

 

12.0

Reversal of impairment of property, plant and equipment and intangible assets

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Share of profit of entities consolidated according to the equity method

 

16.0

 

0.0

 

−0.2

 

0.0

 

0.0

 

3.4

 

19.2

EBIT

 

559.1

 

57.3

 

184.0

 

73.5

 

−146.2

 

−4.2

 

723.5

EBIT margin

 

9.8%

 

2.1%

 

4.5%

 

2.4%

 

 

 

 

 

4.8%

Interest and similar income and income from other securities and loans

 

7.9

 

23.0

 

8.7

 

7.0

 

339.4

 

−350.1

 

35.9

Interest and similar expenses

 

83.8

 

115.7

 

72.3

 

59.6

 

218.6

 

−357.4

 

192.6

Tax expense

 

−98.5

 

20.8

 

−25.4

 

−22.8

 

−36.4

 

0.0

 

−162.3

Profit after tax

 

387.3

 

−14.3

 

95.0

 

−1.7

 

613.8

 

−655.8

 

424.3

Segment assets

 

5,593.5

 

3,777.3

 

4,211.7

 

2,482.7

 

11,146.5

 

−11,209.5

 

16,002.2

Of which investments in entities consolidated according to the equity method

 

213.0

 

0.0

 

5.0

 

0.0

 

0.0

 

38.5

 

256.5

Net financial debt

 

1,372.0

 

1,709.31

 

1,298.8

 

966.9

 

−4,009.0

 

−74.31

 

1,263.7

Investments in property, plant and equipment and intangible assets

 

536.9

 

81.81

 

293.2

 

147.8

 

9.5

 

0.0

 

1,069.21

Employees (full-time equivalent)

 

10,791

 

11,062

 

14,914

 

10,698

 

1,312

 

0

 

48,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1
Including values from assets and liabilities held for sale.

 

 

 

 

In millions of euros

The reconciliation of the key performance indicators, EBITDA and EBIT, is shown in the following tables:

EBITDA

 

 

2024/25

 

2025/26

 

 

 

 

 

Net exchange differences and result from valuation of derivatives

 

−3.7

 

−7.5

Consolidation

 

4.6

 

3.2

EBITDA – Total reconciliation

 

0.9

 

−4.2

 

 

 

 

 

In millions of euros

EBIT

 

 

2024/25

 

2025/26

 

 

 

 

 

Net exchange differences and result from valuation of derivatives

 

−3.7

 

−7.5

Consolidation

 

4.6

 

3.2

EBIT – Total reconciliation

 

0.9

 

−4.2

 

 

 

 

 

In millions of euros

All other key performance indicators reflect only the effects of consolidation.

Geographical information

The following table provides selected financial information summarized according to the major geographical areas. External segment revenue is broken down by the customers’ geographical location.

Long-term assets and investments are reported based on the entities’ geographical location.

Geographical information

 

 

Austria

 

European Union

 

Other Countries

 

 

2024/25

 

2025/26

 

2024/25

 

2025/26

 

2024/25

 

2025/26

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

1,083.2

 

1,074.4

 

8,969.3

 

8,784.5

 

5,691.2

 

5,204.2

Long-term assets

 

5,534.7

 

5,794.7

 

1,424.6

 

1,409.5

 

971.2

 

975.6

Investments in property, plant and equipment and intangible assets

 

845.8

 

819.8

 

236.7

 

125.1

 

160.6

 

124.3

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions of euros

The voestalpine Group does not record revenue from transactions with a single external customer that amounts to 10% or more of the entity’s revenue.

EBIT (earnings before interest and taxes)
Profit before the deduction of taxes, non-controlling interests, and financial result.
EBITDA (earnings before interest, taxes, depreciation, and amortization)
Profit before the deduction of taxes, non-controlling interests, financial result, and depreciation and amortization expenses.

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