Voestalpine reduced revenue by 8.5% y/y in FY2023/2024

Steel company Voestalpine in the 2023/2024 financial year (ended March 31, 2024) reduced its revenue by 8.5% year-on-year – to €16.68 billion. Revenue reached the second highest amount in the company’s history after a record €18.2 billion in the previous fiscal year, Voestalpine said in its financial report.

“After reaching record levels in the previous year, key indicators are returning to normal,” the report says.

The company’s EBITDA for the reporting period decreased by 34.5% compared to the 2022/2023 financial year – to €1.67 billion, which is in line with expectations. Total profit from operations (EBIT) amounted to €569 million (-64.9% y/y). The decline was driven by a slowdown in the global economy and one-off effects, including the planned spin-off of Buderus Edelstahl in Germany and the restructuring of Metal Forming.

Despite the decline in revenue, the company’s cash flow from operating activities more than halved to €1.4 billion. As of March 31, 2024, Voestalpine Group employed 51.6 thousand people, up 0.8% y/y.

The company’s key achievements in the past financial year included the opening of a special steel plant in Kapfenberg with an expected annual capacity of 205 kt, and laying the foundation for the greentec steel program by signing contracts for the construction of two electric arc furnaces (EAFs) in Linz and Donauwach. The total investment is estimated at €1.5 billion.

“The official opening of our specialty steel plant in Kapfenberg and the start of construction of greentec steel in Linz and Donavec are particularly important for Voestalpine’s future from a strategic perspective. With this in mind, the past fiscal year can be considered a historic success,” explains Herbert Eibensteiner, CEO of Voestalpine AG.

In total, Voestalpine’s investments in the 2023/2024 financial year amounted to €1.2 billion, an increase of 33.7% y/y.

“In the past fiscal year, we once again proved our strength and resilience. Despite operating in an extremely volatile market, we managed to achieve significant operating results that met market expectations and further strengthened and improved our strategic position in international markets through a number of major investment projects,” the company’s CEO added.

In fiscal year 2024/2025, the company expects the market trends that emerged in the previous financial year to continue. Voestalpine’s EBITDA is projected at €1.7-1.8 billion.

Earlier this year, Voestalpine AG produced the world’s first high-quality green wire rod from hydrogen-reduced iron and scrap metal at its Donavik plant. The hydrogen-reduced pure iron was produced at the Hyfor pilot plant, and the landmark smelting was carried out at the Technikum Metallurgie research center, a unique small but fully-fledged steel plant of the group.