Voestalpine Opens Severance Talks in Kindberg as Tariff Costs Clip Forecast

Talks with the works council over a social plan for voestalpine Tubulars in Kindberg got under way on Thursday, according to media reports, covering the roughly 150 jobs slated to disappear at the site by March 2027. Those affected should have a severance agreement in hand by the end of November 2026. Management pins the restructuring on steep US tariffs, with difficult conditions in Middle Eastern alternative markets adding to the squeeze.

The workforce reduction is the most tangible fallout from the trade barriers the group cites in its corporate outlook. Voestalpine on Wednesday pointed to extra temporary US duties, higher energy and logistics costs, logistical headaches and postponed energy projects in the crisis region, alongside the continuing war in the Middle East. Reuters likewise flagged geopolitical uncertainty and elevated costs behind the revision.

Forecast Ceiling Comes Down

The group now expects EBITDA of EUR 1.60–1.70bn for fiscal 2026/27, narrowing the range from a previous upper bound of EUR 1.85bn. The guidance includes net positive one-off items of about EUR 100m from the first quarter, which also flattered the half-year figures reported on Wednesday by contributing roughly EUR 100m to both EBITDA and EBIT.

First-half EBITDA nevertheless climbed to EUR 846m, up from EUR 722m a year earlier. The stock still slipped 2.0% on Friday to close at EUR 36.94, with APA noting a quiet news day for the shares.

Brokers Split on Direction of Travel

Analyst reaction was mixed. JPMorgan, according to media reports on Thursday, trimmed its price target to EUR 52.50 from EUR 56.80 while keeping its "Overweight" rating. Deutsche Bank Research reaffirmed its "Buy" call and EUR 63.00 target on Thursday, but cut its EBITDA estimates for fiscal 2027 through 2029 by 3–7%, citing energy and logistics costs and US tariffs running higher than anticipated.

UBS also stood by its buy recommendation and EUR 64.00 target on Thursday, though it judged the results negative for the stock.