Metal Engineering Division
In millions of euros |
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Change |
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04/01– |
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04/01– |
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Revenue |
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1,086.4 |
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1,087.0 |
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0.1 |
EBITDA |
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132.0 |
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102.0 |
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–22.7 |
EBITDA margin |
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12.1% |
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9.4% |
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EBIT |
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86.5 |
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54.4 |
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–37.1 |
EBIT margin |
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8.0% |
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5.0% |
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Employees (full-time equivalent), end of period |
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14,696 |
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15,008 |
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2.1 |
World's first hydrogen-based rail
voestalpine has produced the world’s first hydrogen-based rail at its Donawitz site as part of a pilot project.
BUSINESS DEVELOPMENT
The Metal Engineering Division’s markets largely maintained their previous trajectory at the start of the new financial year. While the Railway Systems business segment continued to perform well in the first quarter of 2025/26, the individual product segments within the Industrial Systems business segment showed mixed momentum.
Global demand in the Railway Systems business segment remained strong in the first quarter. The rails product segment, which is focused on the European market, continued its strong performance. Capacity utilization at the rail plant in Donawitz, Austria, was correspondingly high. The turnout systems product segment has a global presence, with production facilities on every continent. Demand in Europe was solid during the reporting period, particularly in the Netherlands, the DACH region, and Central and Eastern Europe (CEE). Overall, the quarter was also satisfactory in North America. In Brazil, South America, demand from the heavy-haul sector recently declined somewhat. In China, the market for railway infrastructure remained consistently satisfactory during the reporting period. The signaling product segment also continued its positive development in the new reporting period.
As in the previous financial year 2024/25, the individual product segments within the Industrial Systems business segment were shaped by differing trends. The wire technology product segment continued to face weak demand from the key customer sectors such as automotive, construction and mechanical engineering. Only specialized segments, such as prestressing wire for railroad sleepers, performed well. The tubulars product segment was dominated by the customs issue introduced by the US administration in the first quarter of 2025/26. Since June 4, 2025, steel imports into the USA – an important sales market for OCTG tubes – have generally been subject to a 50% tariff, severely limiting market access for some of the segment’s products. The welding product segment benefited from its broad global positioning and delivered stable performance overall. While demand in the European market remained subdued and North American customers were somewhat more cautious, markets in China, India and Southeast Asia continued to perform very well.
DEVELOPMENT OF THE KEY FIGURES
Revenue in the Metal Engineering Division remained stable in the first quarter of 2025/26, reaching EUR 1,087.0 million, compared with EUR 1,086.4 million in Q1 2024/25. High delivery volumes in rails and turnout systems supported revenue growth in the Railway Systems business segment. In contrast, sales in the tubulars product segment were slightly below the previous year, primarily due to lower selling prices.
In terms of earnings, EBITDA amounted to EUR 102.0 million in Q1 2025/26 (margin 9.4%), down 22.7% from EUR 132.0 million in the previous-year period. The drop in operating profit was mainly due to challenging market conditions in the wire and tubulars segments. EBIT decreased by 37.1%, from EUR 86.5 million in Q1 2024/25 to EUR 54.4 million in Q1 2025/26. As a result, the EBIT margin fell from 8.0% to 5.0%.
As of June 30, 2025, the Metal Engineering Division employed 15,008 people (FTE – full-time equivalents), representing a 2.1% increase compared with 14,696 on the same date in the previous year. This growth was primarily driven by acquisitions made in the previous year in the Welding and turnout systems product segments.