Voestalpine Secures Landmark Logistics Contract Amid Analyst Optimism

Voestalpine AT0000937503

Austrian steel and technology group Voestalpine has announced a record-breaking single order in its high-bay warehouse segment, valued at €41 million. This operational milestone coincides with a significant boost in confidence from analysts at Barclays, who have raised their price target for the company's shares to €44.

In a recent assessment, Barclays has upgraded its valuation for Voestalpine, lifting the price objective from €35 to €44 per share while maintaining an "Overweight" rating. According to analyst Tom Zhang, this adjustment reflects the company's resilient profit margins despite a challenging market backdrop. For the 2026/27 fiscal year, Barclays projects earnings per share of €3.83.

The bank also revised its dividend expectations upward in a stepwise manner: €0.80 for 2025/26, followed by €1.10, and subsequently €1.30. For the current quarter, the analysis suggests that increased coking coal costs are likely to be offset by stronger sales volumes.

Operational Highlights: A Major Project in Istanbul

The record order involves supplying a leading Turkish logistics provider with a state-of-the-art automated warehouse for sporting goods. The facility, located in Istanbul, ranks among the largest storage solutions in the region and is scheduled for completion in April 2027.

Key specifications of the project include:
* Height: Approximately 40 meters
* Length: 222 meters
* Width: 86 meters

The integrated system will feature a high-bay warehouse alongside an automated small-parts storage facility. This contract highlights the rising demand for highly efficient logistics infrastructure in emerging economies.

Global Expansion Strategy in Focus

The Turkey deal is the latest in a string of major international projects for Voestalpine. The company has already installed two 45-meter high-bay warehouses in the Netherlands for furniture retailer JYSK. Simultaneously, work is underway on a 30-meter high pallet racking system in the United Kingdom for a retail client.

The Metal Forming Division is accelerating its global footprint. A specialized production site was commissioned in Kentucky, USA, during the 2024/25 fiscal year, with capacity expansions planned for the current period.

Upcoming Financial Report and Recent Performance

Investors are awaiting the company's third-quarter results for the 2025/26 fiscal year, scheduled for release on February 11. Management has reaffirmed its full-year EBITDA guidance range of €1.40 billion to €1.55 billion.

In the first half of the fiscal year, Voestalpine reported EBITDA of €722 million on revenue of €7.6 billion. The company's net debt declined to €1.5 billion, pushing the gearing ratio down to 19.5%—its lowest level since 2006/07. Free cash flow for the period reached €296 million.