Voestalpine Locks In Green Power Deal as Electric Arc Furnace Hardware Lands in Linz
Published on 09/23/2026 at 15:40 | Editorial boerse-global.de
Voestalpine has moved on two fronts at once, securing a broader energy partnership for its steelmaking overhaul while taking delivery of the core equipment that will anchor it. The Linz-based steel and technology group signed an expanded framework agreement with domestic utility Verbund, according to media reports, covering renewable power supply, battery storage deployment and hydrogen-related projects.
The stock took the news in stride. Shares of Voestalpine slipped 1.2 percent to EUR 45.16 in today's session, a muted reaction to a deal whose value lies in long-term planning certainty rather than near-term earnings.
That certainty matters because the company's transition hinges on reliable access to green electricity and alternative energy carriers. At its home base in Linz, Voestalpine has already completed the structural shell of the new electric arc furnace hall. From there, the industrial group intends to begin delivering CO2-reduced steel starting in February 2027. The deeper cooperation with Verbund is designed to align grid infrastructure, storage solutions and green power volumes with the demands of continuous industrial operation in the years ahead.
Furnace Components Arrive as Greentec Steel Stays on Track
The physical build-out reached a milestone today, with the arrival in Linz of the core equipment for the new electric arc furnace. The components, weighing roughly 790 tonnes in total, were shipped largely by water and originate from manufacturing sites in Germany, Italy and Turkey.
The joint project with plant builder Primetals Technologies remains on schedule and within budget, according to CEO Herbert Eibensteiner. Together with an identical facility in Donawitz, the Linz furnace is slated to begin operating in the first half of 2027 and, at full capacity, will produce around 1.6 million tonnes of CO2-reduced steel annually. By 2029, Voestalpine aims to cut its own emissions by up to 30 percent compared with 2019 — a reduction equivalent to nearly 5 percent of Austria's total CO2 output.
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Rail Business Carries the Growth Story
Running parallel to the energy-intensive transformation is a push to expand the group's infrastructure operations worldwide. Management laid out its medium-term targets at a capital markets day held around the InnoTrans trade fair in Berlin, placing Railway Systems at the center of the strategy.
Revenue in that division is targeted to climb from roughly EUR 2.2 billion to about EUR 3 billion by the 2030/31 financial year, fueled by global investment in rail infrastructure and the shift toward sustainable mobility. Among the recent wins underpinning that ambition is a major order for the Rail Baltica infrastructure project worth EUR 470 million.
Beyond rail, Voestalpine plans to build out other high-margin fields including aerospace, warehousing technology, and tubes and profiles. The shift continues a long-running restructuring: the share of processing activities in total revenue has risen from about 20 percent at the time of the company's 1995 stock market listing to 45 percent today, with further gains expected.
In the past financial year 2025/26, the group generated revenue of EUR 15.1 billion and an operating result before interest, taxes, depreciation and amortization (EBITDA) of EUR 1.5 billion.
North America Adds Another Leg
The rail expansion is being reinforced by targeted growth in North America. As ORF reported on August 31, Voestalpine plans a new production site in Thorold, in the Canadian province of Ontario, for switches and rail components. The build is accompanied by a long-term supply contract with railway operator Canadian National.
Guidance Holds as Investors Watch Execution
The financial foundation for these investments rests on a stable business performance. More than a month ago, the company reported that EBITDA climbed to EUR 495 million in the first quarter of 2026/27, up from EUR 361 million in the same period a year earlier.
For the full year 2026/27, Voestalpine is sticking to its earnings forecast and continues to expect EBITDA in a range between EUR 1.60 billion and EUR 1.85 billion. With a current market capitalization of EUR 7.87 billion — and the stock having closed at EUR 45.62 yesterday, up 21 percent since the start of the year — attention now turns to how smoothly the major projects in Linz and North America proceed.
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