Voestalpine Trims Guidance as Tariff Headwinds Reach Kindberg Workforce

Voestalpine has narrowed the top end of its medium-term earnings outlook, citing a mix of US trade barriers, energy and logistics costs, and the war in the Middle East — pressures that have now spilled over from the P&L into the company's Austrian workforce.

The steel group said Wednesday it now expects EBITDA of EUR 1.60 to 1.70 billion for the 2026/27 financial year, down from a previous range of EUR 1.60 to 1.85 billion. Alongside the tariffs, management flagged higher energy and logistics expenses, deferred energy projects and additional provisional US duties as drags on the forecast.

A stronger first half, flattered by one-offs

The downgrade landed despite a solid set of half-year figures. Revenue for the first half of 2026/27 came in at EUR 7.7 billion, up 0.8% year on year. EBITDA climbed 17.1% to EUR 846 million, while EBIT advanced 36% to EUR 470 million. Net profit reached EUR 290 million.

Those numbers carried a helpful assist: roughly EUR 100 million in positive one-off effects, which the company acknowledged in its disclosure.

Kindberg talks open

At the voestalpine Tubulars site in Kindberg, negotiations with the works council over a social plan got under way, covering about 150 employees slated for redundancy. The company has pointed to US tariffs and difficult alternative markets in the Middle East as the reasons for adjusting capacity there. The job reductions are to be completed by the end of March 2027, with the social plan itself expected to be on paper by the end of November.

Brokers hold their ratings, adjust their math

Analysts responded to the update with a mix of conviction and caution. JPMorgan's Dominic O'Kane cut his price target to EUR 52.50 from EUR 56.80 on Thursday while reaffirming an Overweight rating — a lower target, but no change in the house's assessment category.

UBS kept its Buy recommendation and EUR 64.00 target unchanged the same day, though it described the half-year results as negative for the stock and pointed to the reduced outlook. Deutsche Bank Research also stuck with its Buy call and EUR 63.00 target, but trimmed its EBITDA estimates for the 2027 through 2029 financial years by 3–7%.

Shares closed Friday down 2.0%. dpa-AFX reported more pronounced losses into the weekend without drawing an explicit link between the day's decline and the guidance cut.