Voestalpine’s Aerospace Bonanza and Dividend Lift Counter a €60-80m US Tariff Squeeze
Published on 06/25/2026 at 13:06 | Redaktion boerse-global.de
Voestalpine is living a double life. One arm of the Austrian steelmaker is celebrating a billion-euro order book from Airbus and Deutsche Bahn, locking in production runs through 2031. The other — its troubled tubulars division — is being hammered by US tariffs that will strip €60-80 million from earnings. The group managed to nearly triple its net profit anyway, and shareholders are in line for a fatter dividend.
Net profit for the 2025/26 financial year surged 138% to €424 million, while earnings before interest and tax climbed 59% to €724 million. Revenue slipped to €15.1 billion from €15.7 billion, but the balance sheet tells the real story. Despite pouring billions into its greentec steel transformation programme, net financial debt fell to €1.3 billion and the gearing ratio dropped to 16.2% — the lowest level in two decades. Free cash flow of €537 million provided the firepower for further deleveraging.
On the back of that financial strength, management will propose a dividend of €0.75 per share at the annual general meeting on 1 July, up from €0.60. The increase reflects a new payout policy: from now on Voestalpine will distribute 30% of earnings per share, provided net debt to EBITDA stays below 2.0 times, with a floor of €0.40.
The changing trade environment in Europe is lending a hand. On 1 July, a new EU steel safeguard regime takes effect, slashing duty-free import quotas by roughly 47% to 18.3 million tonnes annually. Any steel imported above that level will face a 50% tariff, double the previous rate. From October, a “melt-and-pour” rule will force importers to prove where their steel was originally smelted and cast, making circumvention far costlier. And the Carbon Border Adjustment Mechanism, already fully in force since January 2026, is adding €40-70 per tonne to shipments from China and Turkey. The Brussels-based steel association Eurofer expects EU steel demand to rise 4-5% this year, and with inventories drawn down after three years of destocking, restocking alone could fuel additional demand.
Should investors sell immediately? Or is it worth buying Voestalpine?
On the ground, the benefits are clear in two high-value divisions. The High Performance Metals unit has secured aerospace orders totalling roughly €1 billion over the next five years — its largest-ever haul in the segment. A significant chunk comes from Airbus, covering high-performance materials and forged parts for the A320, A330 and A350 families. That workload keeps Voestalpine’s plants in Kapfenberg, Mürzzuschlag and its Brazilian subsidiary Villares Metals running at capacity until 2031. In rail, the group landed combined orders worth €500 million in March from Deutsche Bahn and the Swiss Federal Railways for tracks, switches and signalling technology.
Yet the US market is a different story. The 50% tariff on steel imports is hitting Voestalpine Tubulars hard. The Kindberg plant in Austria, which produces speciality pipes for the oil and gas industry, has already cut production to match slumping US demand. Low oil prices are adding to the pressure, and the company puts the total earnings hit in the high double-digit millions — precise guidance is €60-80 million.
The stock reflects that tension. Shares closed at €43.30, having shed more than 8% over the past 30 days and slipping below the 50-day moving average of €44.94. On a weekly basis, the drop was 5.34% as of 24 June. Still, the year-to-date gain stands at roughly 12%, and over 12 months the stock has more than doubled, climbing over 83%. The sell-off, say analysts, reflects near-term uncertainty around the tubulars business rather than the group’s broader health. UBS recently lifted its price target to €50 but downgraded the stock to neutral, arguing that the benefits of EU trade protection and railway growth are already priced in.
Voestalpine at a turning point? This analysis reveals what investors need to know now.
For the current financial year 2026/27, management expects EBITDA in a range of €1.60-1.85 billion. The first of the new electric arc furnaces in Linz is scheduled to start up in February 2027 — a milestone that will test whether Voestalpine’s multi-billion-euro green steel bet can deliver operationally as well as financially.
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Voestalpine Stock: New Analysis - 25 June
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