D.11. Impairment losses and reversal of impairment losses

In addition to other factors, the Group considers the relationship between market capitalization and carrying amount when testing for indicators of impairment. As of March 31, 2026, the Group’s market capitalization was below the carrying amount of its equity. Accordingly, all CGUs were subjected to an impairment test.

This impairment test did not identify any impairment losses as of March 31, 2026. In the previous business year 2024/25, impairment losses totaling EUR 128.0 million were recognized for goodwill (EUR 116.5 million), for other non-current assets of the Buderus Edelstahl disposal group (EUR 6.6 million), and for property, plant and equipment as well as other intangible assets (EUR 4.9 million).

Goodwill is allocated to the following CGUs or groups of CGUs (goodwill-allocated CGUs):

Impairment loss of CGUs to which goodwill has been allocated

In business year 2025/26, there were no impairments of CGUs to which goodwill has been allocated.

In the comparative period (business year 2024/25), impairments were recognized for the following CGUs to which goodwill has been allocated:

Goodwill-allocated CGU HPM Production

In the previous business year (business year 2024/25), an impairment of goodwill amounting to EUR 77.7 million was recognized in other operating expenses in the High Performance Metals Division for the goodwill-allocated CGU HPM Production, which produces high-quality stainless steels. Due to significant deviations in earnings in the fourth quarter of the business year 2024/25 and the increased uncertainties regarding the future earnings development of the CGU, planning assumptions were adjusted.

The recoverable amount (value in use) of this unit amounted to EUR 1,723.3 million as of March 31, 2025. The fifth plan year was used as the basis for calculating the terminal value. The terminal value was determined based on a growth rate of 1.65%. The after-tax WACC was 8.54%; the pre-tax WACC was 11.04%.

Goodwill-allocated CGU Automotive Components

In the previous business year (business year 2024/25), an impairment of goodwill in the amount of EUR 38.8 million was recognized in other operating expenses in the Metal Forming Division at the goodwill-allocated CGU Automotive Components, which supplies a broad product range from highly innovative structural parts to outer skin parts, high-strength hot-formed parts, laser-welded blanks, and complex assemblies with a focus on lightweight solutions made of steel and aluminum to customers in the automotive industry. The impairment was primarily attributable to the consolidation and restructuring measures initiated in response to ongoing underutilization in the European premium segment.

The recoverable amount (value in use) of this unit amounted to EUR 623.4 million as of March 31, 2025. The fifth plan year was used as the basis for calculating the terminal value. The terminal value was determined based on a growth rate of 1.37%. The after-tax WACC was 8.85%; the pre-tax WACC was 11.13%.

Impairment test of non-impaired CGUs to which goodwill has been allocated and units containing intangible assets with an indefinite useful life

The following estimates and assumptions were used to measure the recoverable amounts of goodwill-allocated CGUs that account for a significant portion of the voestalpine Group’s total goodwill as well as units with a significant share of intangible assets with an indefinite useful life (trademarks) in the voestalpine Group’s total carrying amount:

The Steel Division focuses on the production and processing of steel products for the automotive, white goods, electrical, processing, as well as energy and engineering industries. The five-year, medium-term business plan for the Steel Division was prepared based on external economic forecasts for the eurozone, the United States, China, and Mexico (based on the World Economic Outlook of the International Monetary Fund (IMF)¹) and taking into account expected steel consumption.² The production plan reflects the sales forecasts. The CRU Index was considered in the revenue planning for the flat products. Additionally, minor positive, quality-related adjustments were made in individual customer segments. As regards procurement, the planning was based on assumptions concerning raw materials derived from global market forecasts (on the basis of Platts price assessments,³ among others). Based on these assumptions, a stable gross margin is expected in the medium-term business plan. The five-year, medium-term business plan was supplemented by a rough planning stage. The latter includes the investments toward greentec steel—i.e., the substitution of two of the three blast furnaces by electric arc furnaces (EAFs) to be commissioned from calendar year 2027 and 2032—and investments in CO₂ capture technologies (CCUS). In addition, expected increases in emissions allowance prices and the incremental reduction in the number of no-cost allowances pursuant to European Union measures aimed at lowering CO₂ up until the complete elimination of the no-cost allowances in calendar year 2034, as well as a price premium for greentec steel, current commodity price forecasts, and changes to the raw material mix are taken into account.

The last plan year was used to determine the terminal value based on an expected growth rate of 1.39% (2024/25: 1.38%). The after-tax WACC is 7.72% (2024/25: 7.81%); the pre-tax WACC is 9.88% (2024/25: 9.53%).

In the five-year, medium-term business plan for the High Performance Metals Division (HPM Division) with its goodwill-allocated CGU Value Added Services, production facilities (Business Unit HPM Production), and associated trademarks was based on the general economic environment of the relevant segments (particularly the tooling, industrials, oil and natural gas, and aerospace industries) as well as on growth forecasts for the regional sales areas of its core markets, especially Europe, America, and Asia. The portfolio restructuring of the HPM Division has been largely completed with the disposals of Buderus Edelstahl and BÖHLER Profil, the capacity adjustments at voestalpine BÖHLER Bleche, and the global consolidation of production facilities.

The Business Unit HPM Production brings together the production facilities of the HPM Division worldwide. Production covers a highly complex and demanding product portfolio in the areas of tool steel, high-speed steel, valve steel, special forgings, powder materials, nickel-based alloys, titanium, high-, medium- and low-alloy steels, as well as powders for additive manufacturing. The manufacturing process ranges from smelting through transformation (rolling, forging, hot- and cold-rolled strip) to heat treatment and machining, as well as meeting the properties and specifications required by customers. The internal forecasts and assessments of the Business Unit HPM Production—particularly regarding the business focused on metallurgically demanding applications in the tooling, aerospace, and oil and gas industry segments—are based on external sources of information. The focus on the strategically relevant product portfolio, sales initiatives in lucrative niche markets, cost optimizations, and the centralization of supply chain management contribute to the planned improvement in profitability.

The goodwill-allocated CGU Value Added Services is responsible for sales and value-adding services related to the further processing (e.g., heat treatment, coating, sawing, six-sided machining) of materials from HPM Production—primarily tool steel—but also third-party materials. The continued expansion of services in the planning period enhances both customer loyalty and value creation. Ongoing activities will additionally focus on the consistent pursuit of tried-and-tested cost-saving and optimization programs, on sales activities in high-margin subsegments, as well as on initiatives in the areas of global supply chain management and digital sales (customer portals with full e-commerce functionality), which will lead to higher revenue and a positive gross margin trend in the planning period.

Value Added Services is managed by segment and regional management, which focuses on the major sales markets in Europe, America, and Asia. Internal forecasts and estimates regarding the development of these regions are based on external sources of information.⁴ In Europe, a slight recovery is expected and subdued growth in the medium term. The North American market is characterized by uncertainty due to current political forces and protectionist measures. In Asia, a steady recovery is expected in China, with the rest of Asia slowly recovering from the current weak growth. India has high growth potential.

The last plan year was used to calculate the terminal value. For Value Added Services, the terminal value is calculated based on an expected growth rate of 1.57% (2024/25: 1.55%). The after-tax WACC is 8.61% (2024/25: 8.67%); the pre-tax WACC is 11.09% (2024/25: 11.13%) for Value Added Services. For the HPM Division, the terminal value is calculated based on an expected growth rate of 1.60% (2024/25: 1.60%). The after-tax WACC is 8.55% (2024/25: 8.60%); the pre-tax WACC is 10.90% (2024/25: 10.90%) for the HPM Division.

The Group’s expertise as the leading provider of high-quality rails, high-tech turnouts, fastening systems, and digital monitoring systems as well as all associated services was combined in the Railway Systems business segment to further expand the Group’s global presence as a provider of complete railway infrastructure systems. The five-year, medium-term business plan for Railway Systems is based on market forecasts⁵ and project planning for railway infrastructure, taking into consideration the business segment’s strategic focus and the ongoing digital transformation of the rail segment. It also accounts for the different levels of economic development in individual regions.⁶ With regard to the development of material factor costs, general forecasts for the development of personnel expenses and internal assumptions on the development of steel prices were incorporated into the budgets. The planning assumes that the gross margin will be kept relatively stable over the planning period and that potential fluctuations in individual markets will offset one another due to the business segment’s global presence. Likewise, the investments in greentec steel are included in both the five-year, medium-term business plan and the rough planning stage for an electric arc furnace system and its expansion in the pre-production stage. In addition, the planning takes into account expected increases in emissions allowance prices and the incremental reduction in the number of no-cost allowances pursuant to European Union measures aimed at lowering CO₂ until the complete elimination of the no-cost allowances in calendar year 2034, as well as a price premium for greentec steel and changes to the raw material mix.

The last plan year was used to determine the terminal value based on an expected growth rate of 1.42% (2024/25: 1.50%). The after-tax WACC is 8.30% (2024/25: 8.43%); the pre-tax WACC is 10.16% (2024/25: 10.32%).

The five-year, medium-term business plan for the Welding business unit, which is one of the leading manufacturers of products and providers of complete solutions in the field of welding and joining technology, considers expected macroeconomic trends⁷ in each region as well as the forecasts for the relevant industry segments. In particular, the business unit’s market position in the respective sales markets was taken into account, considering the competitive landscape and the projected overall market development. The planning also accounted for the anticipated developments in the production factors used in the value-added process. These include, in particular, cost trends for raw materials, energy, and alloys. The corresponding assumptions are based on market quotations valid at the time of planning as well as on available external forecasts, from which both costs and the resulting price trends were derived. The business unit’s strategic focus on being a full-service provider of “The Perfect Weld Seam” will remain unchanged during the planning period. Optimization and efficiency programs that have already been initiated or are currently underway will be consistently pursued and supplemented by continuous improvement measures. In summary, the planning, which is derived from market expectations, assumes moderate volume growth with a slight improvement in gross margin.

The fifth plan year was used to calculate the terminal value based on an expected growth rate of 1.44% (2024/25: 1.44%). The after-tax WACC is 8.31% (2024/25: 8.45%); the pre-tax WACC is 10.75% (2024/25: 11.09%).

Precision Strip specializes in the production of globally available, technologically complex cold-rolled strip steel products with precise dimensional accuracy, excellent surface quality, and unique edge profiles for the highest customer requirements in the process industry. The five-year, medium-term business plan for Precision Strip was prepared taking into account the general regional parameters in the core markets and reflects the general economic environment of the industry segments that are key to the entities. Current market conditions are characterized by slightly rising demand, volatile geopolitical developments, stiff competition and strong pressure on margins. The growth indicated in the planning is based primarily on securing market leadership in niche markets, expanding market share through a sales campaign focused on customers and applications, and developing new markets with innovative new products that offer high revenue and margin potential. External forecasts were taken into account in internal estimates. These external forecasts are country-specific figures for expected economic growth (GDP forecasts)⁸ that were supplemented by the growth target and industry-specific experience in the relevant markets for the respective product segments. Customer-specific information regarding medium-term outlooks and sales projections also served as sources for sales planning at Precision Strip. As a result, revenue is expected to increase, and the gross margin is projected to remain stable during the planning period.

The fifth plan year was used to calculate the terminal value based on an expected growth rate of 1.37% (2024/25: 1.36%). The after-tax WACC is 8.55% (2024/25: 8.73%); the pre-tax WACC is 10.68% (2024/25: 10.80%).

Sensitivity of non-impaired units

The impairment tests performed confirmed the carrying amount of all goodwill as of March 31, 2026. The following table shows the sensitivity analysis for potential goodwill impairments with respect to the key valuation assumptions—expected cash flows and discount rate. It illustrates the potential impairment as of the reporting date of March 31, 2026 under possible variations in these parameters (general sensitivity analysis), as well as the extent by which both major assumptions would need to change for the estimated recoverable amount to equal the carrying amount (break-even analysis):

Sensitivity regarding technological transformation in connection with decarbonization

The impairment tests of the CGUs affected by the technological transformation, particularly the goodwill-allocated CGUs Steel Division and Railway Systems, were based on a price premium in the base scenario (see explanations in the foregoing), which is not included in the basis for determining the terminal value. In addition to the aforementioned general sensitivity analysis, an alternative scenario that does not include an assumed price premium for greentec steel was developed for each CGU. In this scenario, too, the recoverable amount of the goodwill-allocated CGUs Steel Division and Railway Systems would still exceed the carrying amount.

Impairment test of asset CGUs and of other assets

An impairment loss of EUR 12.0 million (2024/25: EUR 4.9 million) was recognized for certain assets due to a lack of potential for subsequent use or a lack of technical or economic feasibility.

1 World Economic Outlook, International Monetary Fund (IMF)

2 The European Steel Association (EUROFER) regarding steel consumption in Europe; World Steel Association for non-European data

3 S&P Global Platts

4 World Economic Outlook, IMF – International Monetary Fund

5 UNIFE Annual Report

6 World Economic Outlook, International Monetary Fund (IMF)

7 World Economic Outlook, International Monetary Fund (IMF)

8 World Economic Outlook, International Monetary Fund (IMF)