Voestalpine Pitches BYD Tie-Up While Tariffs Force Kindberg Restructuring

Voestalpine is courting Chinese carmakers setting up shop in Europe as potential customers, with CEO Herbert Eibensteiner singling out BYD in remarks to media on Friday. He pointed to the automaker's proximity to Voestalpine's operations in Hungary as a natural advantage.

The sales pitch comes as the group works through a tougher stretch on other fronts. Its Voestalpine Tubulars unit is feeling the pinch from steep US tariffs in its main market, and difficult alternative outlets in the Middle East have added to the pressure — the pair of factors behind the capacity adjustment announced for Kindberg.

Roughly 150 jobs are set to go at the site by the end of March 2027. Talks with the works council over a social plan are already under way and should be wrapped up by the end of November, with affected staff being assessed for openings at other companies in the region and elsewhere within the group.

Guidance Ceiling Lowered

Wednesday's half-year report brought a cut to the EBITDA forecast for fiscal 2026/27, now seen at EUR 1.60–1.70 billion. The company blamed the ongoing war in the Middle East, higher energy and logistics costs, delayed energy projects and additional provisional US tariffs.

Revenue for the first half of 2026/27 came in at EUR 7.7 billion, with EBITDA of EUR 846 million, EBIT of EUR 470 million and net profit of EUR 290 million. One-off gains of around EUR 100 million flattered both EBITDA and EBIT.

Brokers Stay Positive

Two research houses reaffirmed their buy ratings on Thursday, though their price targets differ. UBS kept its recommendation and a EUR 64.00 target, calling the half-year results negative for the stock in light of the reduced outlook. Deutsche Bank Research maintained its buy call and a EUR 63.00 target while trimming EBITDA estimates for fiscal 2027 through 2029 by 3–7%.

Shares closed Friday down 2.0%, with dpa-AFX describing trading in Vienna as quiet and lacking clear direction from the wider European market. Voestalpine has scheduled its third-quarter 2026/27 results for 10 February 2027.