Voestalpine AG, the global steel and technology group, has maintained its market position during the first half of the 2024/25 business year despite facing significant economic challenges. The company's performance from April 1 to September 30, 2024, reflects its successful strategy of focusing on high-tech steel products while maintaining a diversified presence across multiple sectors and regions.
The company reported revenue of €8 billion, showing a modest 5.5% decrease from the previous year's €8.5 billion. EBITDA reached €718 million, down 20.5% from the previous year's €903.4 million, impacted by one-time effects including an €81 million write-down related to the sale of Buderus Edelstahl. Despite these challenges, the company maintained a solid equity position of €7.4 billion and a stable leverage ratio of 27.5%.
In a significant development, Voestalpine became the first European steel company to issue a green bond, raising €500 million for sustainable projects. This milestone achievement demonstrates the company's commitment to environmental sustainability and its greentec steel program. The company has also expanded its global footprint with several strategic projects, including a €70 million investment in Indiana, USA, to support new contracts with major truck manufacturers.
The company's railway infrastructure and aerospace sectors showed particularly strong performance, while its warehouse systems division continued to secure major contracts. Notable projects include the construction of a 50-meter high bay warehouse for Nexen Tire Corporation in the Czech Republic and the supply of 260 high-speed turnouts for Egypt's first high-speed railway line.
Employment levels remained stable with a 1% increase to 51,700 employees worldwide, reflecting the company's continued commitment to growth despite market challenges. The workforce expansion primarily supports new international projects and technological advancement initiatives across the company's global operations.
The automotive sector presented mixed results, with European operations facing headwinds while non-European locations maintained good capacity utilization. The energy sector experienced a decline in demand, and construction and mechanical engineering industries remained at lower activity levels. These sectoral variations highlight the importance of Voestalpine's diversified business model.
Looking ahead, Voestalpine has adjusted its EBITDA outlook to approximately €1.4 billion for the 2024/25 business year, considering current market conditions and one-time effects. The company continues to implement its greentec steel projects according to schedule, demonstrating its commitment to climate protection while maintaining operational excellence across its global network of approximately 500 group companies in more than 50 countries.
