Voestalpine's EBIT Jumps 59% as EU Trade Protection and Green Steel Investment Offset US Tariff Hit

Austrian steelmaker Voestalpine reports 59% EBIT jump to €724M, net profit more than doubles, debt hits 20-year low, and EU trade protections widen competitive moat.

The Austrian steelmaker’s earnings momentum is unmistakable, even as headwinds from Washington persist. For the financial year 2025/26, Voestalpine posted a 59% surge in EBIT to €724 million, while net profit more than doubled to €424 million — a 138% leap from the prior year. The strong bottom line reflects not just operational improvements but also the growing impact of a shifting regulatory landscape in Europe.

That financial strength is visible on the balance sheet too. Net financial debt dropped 23% to €1.3 billion, pushing the gearing ratio to 16.2% — the lowest level in two decades. Free cash flow came in at €537 million, providing ample room to fund both capital returns and the company’s most ambitious transformation yet. Management has proposed raising the dividend from 60 to 75 cents per share, a 25% increase that will go to a shareholder vote on 1 July.

The headline numbers overshadowed a slight revenue dip to €15.1 billion, but cost discipline and a more favourable product mix helped protect margins. The EBITDA of €1.5 billion also sets the stage for a higher range this year: management guided for EBITDA between €1.60 billion and €1.85 billion in 2026/27, underpinned by expected demand recovery. According to Eurofer, EU steel consumption is seen rising 4% to 5% in 2026, with destocking cycles running their course and restocking likely to follow.

Much of Voestalpine’s optimism stems from Europe’s evolving trade defences. On 12 June, EU member states agreed to extend the Carbon Border Adjustment Mechanism (CBAM) to downstream products made from iron, steel and aluminium. The move prevents cheaper imports from countries with weaker climate rules from undercutting European producers. With CBAM fully operational since January 2026, steel imports from China and Turkey now cost an estimated €40 to €70 more per tonne. Including the CBAM surcharge, foreign steel lands at roughly €600 to €620 per tonne — virtually eliminating the traditional price discount that importers used to enjoy.

The protection is multi-layered. From 1 July, duty-free import quotas will be halved to 18.3 million tonnes, while the over-quota tariff doubles to 50%. Then from October, a melt-and-pour traceability requirement adds another administrative hurdle for foreign suppliers. For a low-emission producer like Voestalpine, these measures widen the competitive gap against high-emission rivals.

The company is using that breathing room to execute its €1.5 billion greentec steel programme, the biggest climate investment in Austrian history. New electric arc furnaces under construction in Linz and Donawitz will have the capacity to produce 2.5 million tonnes of CO?-reduced steel annually. Core equipment is due from suppliers in autumn 2026, with both furnaces commissioning in the first half of 2027. Voestalpine has already spent roughly 60% of the budget. The project is expected to cut the group’s emissions by about 30% by 2029 compared with 2019 levels.

Not all headwinds have dissipated. The US has slapped 50% tariffs on steel since June 2025, and Voestalpine’s results took a hit in the high double-digit millions. The Tubulars division, in particular, is struggling — special pipes face both the tariff burden and low oil prices. This headwind is likely to persist through the current year.

Yet the stock market has taken note of the improving fundamentals. Voestalpine shares traded around €47.42, up roughly 23% since the start of the year and about 110% higher than 12 months ago. The 52-week high of €49.22 is now just 4% away, and with the dividend hike, a strengthening trade shield, and a green steel project nearing completion, the company is entering a period that executives clearly believe will reward patience.