Voestalpine Seeks Additional Capital Through Convertible Bond Expansion

Voestalpine plans a €35M convertible bond increase, leveraging strong operational performance and a new dividend policy, despite potential shareholder dilution concerns.

The Austrian steel and technology group Voestalpine has returned to the capital markets with plans to increase the size of an existing convertible bond. This move, while occurring against a backdrop of improving operational performance, is one that shareholders often view with caution due to its potential dilutive effect.

Details of the Capital Increase

In an ad-hoc announcement released on Monday, the company's management board disclosed its intention to expand the volume of its 2023 convertible bond by up to €35 million. This would bring the bond's total nominal amount to a maximum of €285 million. A critical detail for existing shareholders is the exclusion of subscription rights. The board plans to service any potential conversion rights using treasury shares already at its disposal, which currently number 7,098,547, representing 3.98% of the share capital.

Pending supervisory board approval and favorable market conditions, the offering is slated for the second half of March at the earliest. It will be directed exclusively at institutional investors outside the United States and other excluded jurisdictions.

Strong Operational Performance Provides Context

This capital measure follows a period of robust financial results. For the first three quarters of the 2025/26 fiscal year (April to December 2025), Voestalpine reported revenue of €11.1 billion. More impressively, EBITDA rose by 7.2% to €1.0 billion, while EBIT saw a significant 20.9% increase to €473 million. Pre-tax profit surged 46.5% to €372 million, and free cash flow was notably strong at €345 million.

Despite substantial ongoing investments in its "greentec steel" decarbonization program, the company managed to reduce its net financial debt by 27.4% year-over-year to €1.4 billion. Equity climbed to €7.6 billion, and the gearing ratio improved markedly to 18.7% from 26.2%.

Concurrently, Voestalpine has revised its dividend policy. Starting with the 2025/26 fiscal year, the company intends to distribute 30% of earnings per share, provided the net debt-to-EBITDA ratio remains below 2.0 after the payout. A minimum dividend of €0.40 per share has also been announced.

Share Price Dynamics and Confirmed Outlook

The stock experienced a pullback following the bond news, retreating from a late-February high. Shares closed at €45.74, marking a 7-day decline of 5.73%. However, the longer-term perspective remains positive, with the share price nearly doubling over the past 12 months (+99.91%) and showing a year-to-date gain of 18.31%.

From a technical standpoint, the price remains above the 50-day moving average of €41.72. The 14-day Relative Strength Index (RSI) reading of 38.2 indicates weaker short-term momentum, aligning with the recent correction.

The company has reaffirmed its full-year guidance for 2025/26, anticipating an EBITDA between €1.4 billion and €1.55 billion. Additionally, its headcount (full-time equivalents) as of December 31, 2025, decreased by 3.8% to 48,700 employees.