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Vanguard Mid-Cap Value Index Fund Stock Price: Quote, Forecast, Splits & News (VOE)

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Company Profile

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Vanguard Mid-Cap Value Index Fund Price & Performance (VOE)

Stock Performance

Updated Mar 25, 8:00 PM UTC

VOE:AMEX

$162.52USD

0.34% · $0.56

After Hours

-0.02% · $0.03

Open

$163.14

High

$163.31

Low

$161.86

Market Cap

$31.19B

P/E Ratio

18.5

Volume

212.02K

Year High

$176.83

Year Low

$146.37

Dividend Yield

1.65%

News & Market Insights

ETFs Witness Record Inflows Amid Market Optimism
Mar 25, 2025
ETFs attracted $62.5 billion in capital last week, marking a significant rebound in investor confidence. U.S. equity ETFs led the surge with $41.6 billion, supported by steady interest rates and a recovering stock market. Popular funds included Vanguard S&P 500 ETF and Schwab U.S. Dividend Equity ETF.1
Mid-Cap Growth Funds Outperform Broader Market
Feb 20, 2025
Mid-cap growth funds have delivered impressive returns of 6.5% year-to-date, outpacing the overall stock market. Top performers like Fidelity Mid Cap Growth Index Fund and Vanguard Mid-Cap Growth Index Fund have shown strong one-year gains, reflecting investor interest in this category.2
Defensive ETFs Gain Traction Amid Market Volatility
Mar 4, 2025
Defensive ETFs are becoming increasingly popular as market sentiment turns cautious. Indicators like the Fear & Greed Index and rising VIX levels signal investor unease. Funds focusing on utilities and minimum volatility are attracting attention as protective measures against potential market downturns.3

What's Happening

Peers

Earnings

Report Date

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Rev Estimate

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Avg 1d Change

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Report Period

Q3 2025

EPS Estimate

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Implied Move 1d

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Transcript

40s

Thank you very much. Good afternoon, ladies and gentlemen. Welcome to the analyst conference call for the first three quarters of business year twenty twenty four, twenty twenty five. Next to me are sitting our CEO, Herbert Eigensteiner and our CFO, Gerald Meyer. As usually, we will start with a quick presentation with business development, actual situation and financial figures. And afterwards, we will be happy to answer your questions. I would like to hand over now to Herbert Eimensteiner.

1m 22s

Thank you very much. Good afternoon, ladies and gentlemen, to our presentation about the business year third quarter. And let me start with two slides of out of our strategy. And when you look at the left hand side, you can see what global megatrends we saw when we implemented this strategy. And I think very as we see in our recent geopolitical development, this is globalization or deglobalization and trade restriction is the environment we are in. We see the climate change topic still there. And on the other hand, we are well aware, and this is more or less worldwide, that we have a demographic and sociocultural change. And you are well aware that we see a rapid technological change. Our strategy should safeguard our economic viability and also strengthen the resilience of Stalpine and what we want, and this is a clear goal, we want to have sustainable value enhancing growth. What are the goals for the coming years of this strategy? As I mentioned before, this value enhancing growth in this very dynamic environment, we are in the focus here is clearly in our processing activities. When you look at the second item, decarbonization, the steel production is volume wise on a strategic hold position.

3m 45s

The focus is clearly on this decarbonization and keeping this top quality and technological approach when it comes to products. We take advantage of this new mobility requirements, And this is not only automotive, this is railway infrastructure, this is airplane business and others. And yes, we need an energy transition. We are part of that. But we also want to be benefit from this transformation with our own products, which is the case wind, water power and photovoltaic. And where important is this on the right hand side, this first bullet point, internationalization in a changed trading environment. This means production local for local. You may have told it several times that we did investments, for instance, in The U. S. And just to avoid not only tariffs, but also to make sure that logistics and all the other things Manageable, so that this is the local for local approach.

5m 25s

A few example, production is moved to The U. S. For the Hyper Warehouse business. It's million coming from Europe in the last years now. It's directly produced in The U. S. We see that turnout business is a very local business in The U. S. So it's a Buy America topic. So that's the reason why we grow our business there. But there are some other examples. For instance, railway infrastructure in Egypt and local production of turnouts, the same we do actually in South America. So this is a very important thing for us and is also part of the growth story as an example for the railway business, but we do also divesting of activities if it's necessary. And I will explain that afterwards as well. Competitive production sites, it's clear. We do that. We take the opportunity in difficult times to improve our efficiency, and we do that in automotive, but in all the other divisions as well. Very important is that we have this technological leadership approach means that we are focused on high quality, high technological products. This is important for us. We do not think about commodities and only in higher qualitative product.

7m 21s

And employees are always very important because qualified people are key to our success. Just to give you a brief overview of where we are focusing on in the upcoming years. As I mentioned before, it's clear this is our portfolio optimization. I think you are well aware that and you have seen it in the figure. We had Pudero for sale, and we have successfully closed this transaction in at the January. And that means, strategic wise, the reduction of the European footprint and more standard tool steel products. And so we can focus our product mix in on high end tool steel and special steel metals. And on the other hand, it was a loss making activity, which is now a positive, I would say, investment also for the future development. We do some other reorganization of our businesses in high performance metals, supply chain optimization, organizational changes, efficiency program and the same we do in automotive automotive components, as an example, business in Germany. We will bundling our competencies in several companies, and we will close down one factory in Germany that brings cost and also cost improvements. And Gerrit Meyer will tell you that this reorganization is more or less digested till the end of the year when it comes to costs.

9m 41s

And smaller business for automotive, tools, can business is closed has been closed by the steel division. I think it's not necessary to explain again our transformation strategy. So far, we really appreciate our lower risk decarbonization strategy. We are in the middle of the first step of our decarbonization path. In a nutshell, we closed down two blast furnaces and will be replaced by electro arc furnaces. How is the project proceeding? You know it's a CapEx of billion, 20 5 percent of the CapEx is already spent and 60% is awarded. We will ramp up this project in the beginning of twenty twenty seven. All the other steps have to be decided in the next years to come, 2026, '20 '20 '7. Now we are working on the first step. If we move to the development in our markets, Europe is our weakest market, and first of all, BINI was impacted by an ongoing weak economy. In contrast, railway systems, aerospace and warehouse and WACC solution did very, very well, not only in Europe, but particularly in Europe. North America. In general, our plants performed very well. And so when it comes to oil and gas exploration, You know our OCTG business has slowed down in Q3.

12m 26s

All the other activities, railway systems, warehouse and rack and tubes and sections performed very well. Brazil, always interesting. All in all, satisfying. But in the last quarter, we see a slowdown in tool steel production coming from the strong rise of interest rates of the Brazilian government. So in China, all in all, very good. Thanks ongoing strong production in wintertime, mostly at the end of the Q3. We suffered a little bit from the weekend of the German OEMs in China, all the other companies, we are doing quite well. So let me come to the divisions. Steel division performed overall very well in generally in a very difficult steel market. And Q3, I would say that December was really, really weak from the maintenance stops or stops of the automotive industry. But when you look at the earnings, we increased a little bit the earnings year on year in the steel divisions. High performance metals, very challenging in tool steel, but aerospace continued to perform very, very well. And metal engineering was constantly strong with high demand for railway infrastructure, and I've mentioned that before, not only in Europe but globally. Metal Forming differently, very weak development automotive components.

14m 54s

That's the reason why we do this efficiency program there and warehouse and rack solutions and, as I mentioned before, tubes and sections in The U. S, performed quite well. So far, the market overview and now let us come to the figures.

15m 19s

Thank you, Herbert. I would like to give you an insight to our numbers and how everything that Herbert told you translates exactly into our first three quarters. And let me start with the revenue line item. We are down million comparing the first nine months to the first nine months of prior year. One third roughly of the $650,000,000 refer to lower volumes and mix deviations. The other two third is, of course, a price issue. And this is in particular related to lower raw materials, all the raw materials and also energy is cheaper than it was the year before. Talking about EBITDA and EBITDA, you see that we are down roughly $300,000,000 Interestingly, we are slightly up compared to the prior year in Steel division and the other divisions are down. I think it's no surprise you all know that in HBM division we sold PUDIOs. This is a nonrecurring item of more than $80,000,000 which is included there. We are in metal engineering where we have our OCTG business, which was extraordinarily strong in the prior period. This is down compared to that. This also is the main reason why we are down in metal engineering because you know railway system is performing well, but this is the main reason is tubeless there, I mean, it's OCTG.

16m 50s

Metal Forming division is also down and here we have the issues in automotive components business where we're also restructuring and we recognized roughly a little bit more than $30,000,000 of restructuring cost end of last quarter. So all in all, the one off items add up to 170,000,000 in EBIT. And if I go into a little bit more detail and summarize it for you there, 80,000,000 roughly a little bit more referred to the sold business of Pudiaros, more than $30,000,000 is restructuring of automotive components in Germany. Herbert explained to you the Camtek business in steel division. This is a little bit less than $10,000,000 there. So this adds up now to roughly $170,000,000 and then there's still things to come and you read it. So we still expect something left for automotive components, another 15,000,000 to come until end of our fiscal year and then some minor things of reorganization and restructuring in our High Performance Metal division where we bundle in particular sales activities, storage facilities, which should then help us and support us in releasing working capital. In future, financial result exactly where we have been last year, so roughly $140,000,000 This is the level of last year.

18m 19s

And then last but not least, we end up with a profit after tax of $415,000,000 last year, this year $277,000,000 And the tax rate and this is obvious here is lower than it was last year. We had some like in last quarter. I explained that we had one off well, not one off, it's PAX income for prior periods in there of roughly $38,000,000 and on the one side. And on the other side, we have impacts which are not tax deductible and this has to do with the sale of Pudiaros. So everything is, I think, crystal clear if you look there and go into the details. Going to the EBITDA bridge now, I would like to share with you, you see there first two columns, price and raw materials, $54,000,000 plus in gross margin. This the plus comes in particular from our steel division and the others are slightly down. So and the net number is million plus in gross margin. As I mentioned before, all the raw materials and also energy were cheaper than in the comparing period. And these are the $494,000,000 in the second quarter. What is also interesting is the deviation in mix volume minus 55,000,000 going there into a little bit more detail.

19m 44s

We see that we have negative volume developments in all the division. A main reason was that in particular, the brakes for our automotive customers were longer than in prior years and than expected actually. And so this is why we are a little bit behind there and also one main reason for our reduced outlook to $1,300,000,000 in EBITDA. What was positive on the other side is the mix development. So we have positive mix developments in particular for specialty products and heavy plate as we had it in the last quarters. Last but not least, the last line item there or column there, miscellaneous minor $300,000,000 it's quite a big number what is in there. On the one side, we had positive impacts there last year. You might remember that we recognized subsidies for energy end of fiscal let's say, end of calendar year 'twenty three of $80,000,000 roughly. And this year, we had an extraordinary impact there from the sale of Pudero's of more than $80,000,000 So this, if you add up these two, this adds up to $160,000,000 And then, of course, we have to add to include inflationary effects on the personnel side, for example.

21m 7s

And all in all, this adds up then to roughly $300,000,000 But the main reason is the subsidies of last year and put the arrows this year, which add up to €160,000,000 Yes, I would like to go now to the next slide. The next slide gives you some insight to our cash flow development. The first two columns compare the first three quarters. The last one is just Q3. And if you look there, we managed quite well to improve our working capital as we also announced and indicated when we explained the half year numbers to you. So we expected improvements there and now they are there. This comes from active, of course, working capital management. And so the impact there was definitely very positive, in particular in Q3, where you see positive development of working capital of 180,000,000 What is also included there in the first three quarters, this was already included in Q2, is tax payments for prior years, I explained that the last time, of roughly CHF100 million. So if you exclude that, it would have been positive also for the first three quarters working capital development. What is also interesting is in our cash flow from investing activities.

22m 41s

You see here a number of $750,000,000 1 hundred and 10 million dollars is included there for our GreenTech Steel project in the first three quarters. Yes, and we definitely expect also positive development in Q4. And so we expect positive free cash flow of roughly or above a little bit above $100,000,000 as of today. What I would like to share with you here is that we are definitely working also going forward in improving our working capital and also our cash out from investing activities. And we guided the last time investing activities for next year, $25,000,000,000, 20 6 billion dollars between $1,300,000,000 and $1,400,000,000. We reduced this now. We worked on that, reduced this now. We are in the middle of the or the end of the planning process. And what we expect as of today is CapEx next year below $1,200,000,000 This is our clear target there to support also free cash flows. Yes, until end of this year, our expectation is also $1,200,000,000 of cash out for investing activities. Next slide, I share here with you as you know this slide and this chart. What we can say here is that the balance sheet is unchanged strong.

24m 6s

Equity is at the level of last year. Equity ratio is a little bit below 50%, forty eight % during 26%, slightly above year end fiscal year end 'twenty three, 'twenty four. But in this area, our net debt EBITDA at $1,400,000 so means a sound balance sheet and financial structure. Next slide. What you see here is just one headline there for me. Homework for this year is done and no major tasks for next year. So redemption adjusted $200,000,000 so nothing to expect there. We feel comfortable and have enough committed clients and flexibility also on our financial side to be ready for things which might have to be done. Yes. So this was it from my side. In a nutshell, about the financials, and I hand over now again to Herbert.

24m 59s

Thank you. I will end up with the outlook. Thank you. I will end up with the outlook. Railway systems, warehouse rec, warehouse and rec solutions and aerospace business will stay will remain strong. Also, globally, we in Europe, we see no recovery in the next month. But what we should mention, and this is, I would say, even positive, that we see some restocking or expect some restocking effects in Q4 and the months to follow. And so the stocks, I would say, are lower than the quarter before. So we see this restocking effect. This is apparent consumption and not real consumption in North American plants, local plants, railway tubes, warehouse and racks, I think we can expect the performance will continue. And on the other hand, we see this recently announced tariffs in when we import products into The U. S. And so far, about the actual information, I think this is manageable. It's a manageable figure. And you may be aware most affected is OCTG business from metal engineering and also some products in high performance metals. And these are the most affected parts we will see what this will bring. I think this will be a question afterwards.

27m 38s

The Brazilian business is divided on the one hand, as I mentioned before, because of this higher interest rates. We see some slowdown in metal production. But on the other hand, we see metal processing still strong and on good levels. And Chinese business is expected to stay strong. And as I mentioned before, there is no headwind. There is no tailwind for the German OEMs in China. And this leads to this new EBITDA forecast of 1,300,000,000.0, including this 200,000,000 1 offs, which Gerald has already explained and once again with the outlook for the free cash flow of a bit more than million. So, thank you for your attention, and I think you have a lot of questions.

29m 24s

The first question comes from Alain Gabriel from Morgan Stanley. Please go ahead.

29m 29s

Yes. Thank you for taking my question. I have two of them, please. Firstly, on the guidance, you have referred to the German OEMs in China being weak. Over the last three months, what is driving this change? Is it lower volumes? Is it lower prices or combination or is it higher costs? That's the first question. And I'll ask the second one after you answered this one. Thanks.

29m 54s

Sorry, it's very easy. It's mostly volumes.

30m 1s

Okay, very clear. And the second question is, in a scenario where the war in Ukraine ends, how will that impact your supply chains? Do you see any potential financial gains from every configuration of your supply chains, whether it was energy or iron ore or any type of raw materials?

30m 19s

Yes. We are still getting material from The Ukraine, so not the same amount as before the crisis or the war started. But yes, that can be an option. What the end of the war in the Ukraine would be for Europe, it would be very positive. So not only because of these political topics and the people are suffering severely in the Ukraine, but there is so many demand in rebuilding infrastructure and this would be very positive for the European economy and also for Feasterbide.

31m 25s

Thank you. So on your iron ore supply, does anything materially change going forward?

31m 30s

No. Maybe the volumes can increase again. That's the only change.

31m 41s

Next question comes from Tristan Dressler from BNP Paribasen. Please go ahead.

31m 48s

Yes. Maybe just a quick one on the Ukraine question. Do you have any sense of the potential demand uplift from a resolution of the conflict and how Versopine could participate in that? I think there were numbers out there of 5,000,000 to 8,000,000 ton of potential demand uplift. And also when you mentioned it could be very positive for Europe, but more specifically to the steel market, Do you believe it's also a possibility that if there is a piece that we'll see the return of Russian steel export on European sold? That's my first question.

32m 30s

I think when it's in this Ukraine topic, we are mostly thinking of infrastructure topics that means railway infrastructure would benefiting from that, but also some other activities, high performance metal, tool steel, high speed steel and so on is needed, I guess. And but the question about is, I don't know, it's such a political topic so far. I have no idea how long this would take that this return of this imports would happen. It's difficult for me to say.

33m 33s

Okay. All right. No, that's fair. That's really helpful. And then my question is on The U. S. Tariffs. I know we discussed that in the past, but could you remind us maybe that the volumes that you were shipping to The U. S. By product? Also, I'm interested how much of those volumes were under product exclusion because it's my understanding that the product exclusion process has been revoked. So if you have an exclusion, it still works, but when it lapses, you cannot renew it. So I was also curious when those exclusions that you got will lapse and when you'll see the impact? And also, you've quantified the impact of this tariff in the past. If you could do that again, that will be helpful. And if you could remind us also how it does work. When you pay the do you pay the tariff? Does the buyer pay the tariff? Or you split it? Or exactly when you quantify the impact of the tariffs, what exactly does that include? Thank you.

34m 37s

It's a very tricky question right after the tariffs are imposed. But as far as we know it, that in March, the tariffs will start and all the exemptions will end. I think that's clear so far. For us, we had We are paying tariffs also with the exemptions. The most affected part is OCDG business, I would say, and this was a figure you may remember in the past where we paid fully the 25% tariff without this quota ruling we got in the last years. So it was around $25,000,000 in $25,000,000 to $30,000,000 in tariffs. And when you add this high performance metals business, it's another $10,000,000 to $15,000,000 So I would say, in the worst case, a middle close to a middle double digit figure when we would pay fully the tariffs. But it's worth to mention that we are totally focused in these imports into The U. S. On high quality products. So most of these products are used in The U. S. And not produced in The U. S. So what should we I think we can carry on with our business and there are so many and you mentioned a few of these models you can be to share the tariffs or the customer has to pay the tariffs when you have your high margin, maybe you can even afford the tariff.

36m 52s

So it's not finally clear how it works, but worst case, we are calculating this, I would say, million to million.

37m 9s

Okay. Thank you. That's very clear. Maybe just a quick follow-up on that.

37m 14s

Just as an example, let's talk about OCTG business. So the demand is 5,000,000 tonnes in The U. S. So The U. S. Can produce 3,500,000 tonnes. So 1,500,000 tonnes are remaining for imports. So the whole world is now affected by these tariffs. So if there is need of these products, I think that prices will rise and that customers will pay for this 1,500,000 tonnes. There is no other way out, at least from my perspective.

38m 1s

Okay. So that's clear. And maybe just a quick follow-up then on OCTG. There are some views out there that keeping Korea South Korea, sorry, on a quota would have been more helpful than allow them just to now pay the tariffs. Do you have a view there where you would have preferred Korea to stay on a quota deal rather than now pay the tariff? Or do you think it's still positive overall?

38m 31s

Yes. Every single country and every market will now negotiate with the U. S. Government. I think it's too early to talk about that we have not the final view. What's clear is that it can be that the delivery streams will change in the course of the next year. But I think it's too early to discuss this because I think we are at the beginning of a negotiation phase, and I think that Europe will do that with The U. S. And we will see the outcome. What we can say for us as First Stop being as a whole, it's a even in the worst case scenario, it's a manageable topic. And whatever we can achieve in negotiations between EU and The U. S. Would be beneficial for us.

39m 49s

The next question comes from Michael Maschallinger, Please go ahead.

39m 56s

Yes. Good afternoon. Thanks for taking my questions. I have two and they are both related on your auto business. Firstly, on the current call off dynamics, especially out of Germany, You mentioned December was a weak month. Would you say call offs in Germany are stabilizing at the moment or still declining, weakening? Would it be just interesting what you're seeing in your order book?

40m 21s

Yes, I think we are in a cyclical low. There is no further reduction so far. And we had January is finished. We had very strong production in January for the automotive industry. So this is for sure, this is restocking. That's clear. But I think that there is no further deterioration in automotive.

40m 59s

Okay. Got it. And then second question on your automotive outlook into 2025. We are seeing now some new regulation coming into force on European level. There's corporate average fuel economy and a lot of the German OEMs are still lagging behind the targets, especially one of your main customers, Volkswagen. So it would be interesting the discussion with the OEMs. What is their feedback and how does the new regulation shape their volume outlook for 2025 and ultimately your volume outlook for 2025?

41m 34s

Yes. As I mentioned before, I think we can say that it remains on the level we are at the moment. I do not in general, we are not only delivering to the German carmaker. We deliver to all the European carmakers. So I think that and we have some reduction in German carmaker car volumes replaced by Asian customers. So I think we are thinking on this European market, and the European market will stay stable at this level so far, and this is an outlook for the next two months or three months.

42m 36s

The next question comes from Bastian Sinegorgi, Deutsche Bank.

42m 45s

I've got a couple. And my first one is actually also a follow-up on markets. And I guess it's really hard to be really positive in an environment like this. But could you maybe talk about also the other end markets? You said automotive is stabilizing. Is there any area where you already start seeing any positive signs maybe even on pricing and demand in the more cyclical end markets such as machinery and energy as well? And then maybe a little bit more looking out into next year already, and I know it's early, but is there any early views you may have on 2026 EBITDA already for next year? And is the current consensus around $1,500,000,000 in the right place from your standpoint today? These are my first questions.

43m 32s

Mr. Sidagowitz, I think it's not unlogic to take this 1.3 and it's the one offs to this 1.5. I think there are some uncertainties. We know that some businesses will be better in the next year. Some stay weak. At least, it's not again, it's not unlogic, but I think we you will see a bandwidth in our next year's outlook. And what we know is that we will reduce this capital expenditure to 1,200,000,000 And we have really clear goals for delivering free cash flow and all these measures in place and we have already started.

44m 44s

Okay. Got you. And when you say that some areas you expect to go better, so which are the areas where do we actually see supportive trends already where you would be confident enough to say there are things which are actually going better than the new business here?

44m 58s

Yes. I think the stronger businesses stay strong. As I mentioned before, I think we are in at the bottom of the cycle. And what can be then for the next month, I think the markets remain subdued, as I mentioned before, with the exception that we see this restocking, which is positive for us to make it clear what I think it is my personal opinion, when we will see some upturn, then the first upturns will come in, in building and in machinery. I think household appliances and others will stay difficult. And but this is my opinion and my feeling when I talk to economists that there is some fantasy in the course of the year after summer maybe.

46m 25s

Okay. And then just coming back on to your capital for 2026 CapEx guidance towards $1,200,000,000 or below. Could you please share with us where exactly you've been cutting? Have you also been cutting on the front of decarbonization? And then related to that, it seems like the general enthusiasm on decarbonization has basically faded, of course, when talking also to maybe some of your peers. I guess this is probably playing into your approach of a more measured transition speed here. But are you still convinced that these investments make sense? And could you please also give us some examples on where and how you expect to get a decent return on these investments given that the demand for green steel and possibly also price premium feel a bit more uncertain today?

47m 15s

Yes. I can say that it would be more expensive when we stop some capital expenditure in our Greentech project. It's a big project, and I think we will go on with that. But in a big company like Bristol Bene, there are thousands of also smaller investments, and we I think we did our job to reduce that to a certain extent and does end up in a figure which is by far lower than what we have forecasted previously. I think that's a figure where we don't harm any of the other businesses, and we are very confident with these figures. By the way, it's not only next year where we see in our planning that we will come in 'twenty six, 'twenty seven also with 1,200,000,000.0. And so I think that's the positive thing. It's also part of our activities to create free cash flow. And so I can say this reduction won't harm any of our businesses. And as I mentioned before, we are happy with this step by step approach because we have a certain risk reduction. We have all the rules and regulations and laws are not gone. So we are part of the European Union still.

49m 18s

We have our goals. But what I think is that we have gained flexibility with this first step. That's clear. And we are sure that also on the cost side because when we think about the CO2 costs, I think it's positive. It will turn out positive. Both things is, I think, green steel will be a topic also in the future, and we gain flexibility. These are the main positive aspects in a nutshell.

50m 14s

The next question comes from Christian Akerbal from Citigroup. Please go ahead.

50m 21s

Thanks a lot for the opportunity to ask questions. One clarification, if I may. Did you mention that in the March with the starting of the tariff, 25% tariff, the existing exemptions will end and then we will pay higher tariff, both the old one and the new one. Is that the right understanding?

50m 43s

So far, we understand that with March, the exemption will end and everybody who is importing steel and aluminum into The U. S. Have to pay tariffs.

51m 7s

Okay. So effectively, the Section two thirty two plus the additional 25% tariff is implemented, that will be the effective rate of tariffs on the steel imports?

51m 17s

On the steel imports, the question is who is paying for that? Who is paying for that, yes.

51m 23s

That's clean. And I think I've elaborated on that before.

51m 28s

Yes, yes. I understand. Thanks a lot. The second question is on the green tech. I mean, you mentioned that you spent $370,000,000 to date and then you sort of 60% of the CapEx is awarded. Do you mind providing an update in terms of what is the solution for electricity, the green electricity sourcing for the EAF? I mean, given that you're not too far away from the commissioning of the first one.

51m 52s

I think the green electricity, you know, In Austria, we have green electricity. And I think that's for the first step is everything clear. So we have the grids, we have the contracts also for electricity. More or less, we have contracts for scrap, we have contracts for HBI. So for this first step, everything is in place. And as I mentioned before, when it comes to CapEx, also on everything is on plan and nothing has changed, more or less.

52m 41s

Okay.

52m 46s

The next question comes from Tommaso Castello from Jefferies.

52m 56s

Most questions have already been asked, but I still have a couple, if I may. The first one relates to your stake in Corpus Christi. In case of retaliatory measures implemented by Europe versus U. S. Studies, how would it impact your HBI supply? Is there any mitigating action that you have in mind currently? And does it change your plans for the supply of HBI?

53m 21s

I have no idea if HBI is part of this regulation measures. So far, I have heard it burden me after discussion and motorbikes. But I don't know. So far, there is no we have no information and no hints that HBI is part of this regulation measures.

53m 48s

I see. Thanks for that. And then just coming back to your tool steel business, because you have performed a number of restructuring plans to address the macro headwinds that are affecting the division and you said you are moving from standard grades to more advanced grades. But could you help us understanding a little bit better which are the main end markets and what's the difference between these grades, right? Like so you are currently moving from standard to more advanced, but which are the key end markets that you are looking forward to supplying basically?

54m 23s

A lot of standard business is going into automotive business. And it's leaving from new models, which is at the moment very, very low. That's one thing. And that's the reason why we decided to sell off Bodeiros. But the other topics are going in aerospace business, in higher quality tool steels for oil gas, other energy applications, medicine topics, watches, all those knives, tools, high speed steel, in all those activities, we think that the margin is higher. It's more complex, and this is the reason why we reorganize these things. And it's very working capital consuming, I would say. And this restructuring has the clear goal to make these complex activities lighter in working capital and more efficient to cope with this complexity. And this is money and cash when it comes to capital.

56m 3s

I see. And just to clarify, when you say the aerospace sector, like the outlook is positive, then it will be reflected in good results from tools deal.

56m 15s

Yes, this is clear. But also parts for aerospace as well.

56m 23s

The next question comes from Christian Oph from Baden Bank.

56m 36s

First, when it comes to quarters on the European level, what do you expect? What the EU will decide at the March and maybe implement at the April? That's the first question.

56m 51s

Quotas on the EU side, okay. Yes. Import quarters. Import quarters.

57m 2s

To be very honest, I think we will see that normally in these safeguard measures, we will see a prolongation. And the question is how they will proceed with the easing of volumes. And I think that's not clear so far. We have no information on that.

57m 35s

Okay. Then do you see any kind of impact on the competitive environment in Europe from the bankruptcy of Liberty Steel and all of the subsidiaries there?

57m 47s

No, not really. When you think it's a commodity player, I think it's the volumes were very low in the last years, I would say, over the years. So not really, but we have a capacity in Europe of, I would say, 160,000,000 tonnes and we are producing 125,000,000 tonnes, I think every player who is going out of business is positive for the market situation.

58m 33s

Of course. And when it comes to the cost side, first on energy and second on personnel, Do you see what do you expect going into the next twelve months maybe on the energy side, it's being sideways and some increase or some decline going forward? And what you also expect from the personnel side? Will the increase be again over proportionally? Or will you be able to mitigate a little bit the personnel cost increase you might expect?

59m 11s

To your first question, energy, I think that there are so many information about gas, for instance, which is important, it's important for us, I think it's and also driving the electricity price. I think we are in the middle of a winter where we have very low production in wind and solar activities. So that's make pressure on gas. That's clear. So politically, the problem is Germany more or less because without pressure to go out of power plants. I would say it's crazy and it's also a driver in electricity. But I would say there is no structure, other structural topic that you can say that energy costs will rise further in Europe because Trump want to sell more Oc2G to Europe. By the way, it's already the biggest supplier to Europe. And I do not see on the gas side any long term topic and the gas price is driving the energy price. I think the same in electrical energy. So we will have some topics when wind and solar energy is low. I think not all the countries have made their homework to tackle this volatility. But I'm hopeful that the other countries are doing their homework in that case, building gas plants and all the other plants type, which can reduce this volatility in energy prices.

1h 1m 47s

We had last three weeks ago, per megawatt hour in Germany. Yes.

1h 1m 58s

And on the personal side, Personal cost side?

1h 2m 2s

No. Personal costs, I think everybody is now well aware that we there was a bit of overdoing in the last years when it comes to personnel costs. I think it's inflation is down, and I think we will see a development of wages accordingly, according to inflation, maybe in some areas a bit less.

1h 2m 42s

And maybe last one, maybe a little bit special one. Now as the coalition talks in Austria have failed, come to any kind of conclusion, what do you expect for your country and what is the impact or what do you expect from an impact for your business or for the industrial business as such? And there will be maybe some, yes, whatsoever, whatever comes out going forward.

1h 3m 14s

I think we are export country. I think we will see another campaign and we will see experts, government coming for the next month. The pity is that there are big topics to do in Europe, clean industrial deal, negotiations with The U. S, tariffs, all these decisions, as you mentioned before, with safeguard measures and so on. It's a pity that Austria is not part of this discussion on European level, but I wouldn't overestimate this actual situation. I think our world is our markets are around the world, and I think this is the main issue we are focusing.

1h 4m 33s

The next question comes from Maxine Corge from ODDO PHF. Please go ahead.

1h 4m 40s

So first question is on U. S. Tariffs. So obviously, an objective of the Trump presidency is to increase domestic steelmaking capacity. And in the case of OCTGs, if prices are higher in The U. S. Because of the tariffs, that will encourage local players to develop capacity on the market. So is it something that you would consider yourself building your own capacity in inclusively as well as in other divisions like HBM where you are also affected?

1h 5m 9s

Yes, sir. Long term, maybe. I think the prices are higher in The U. S. I think that this will come. And as I mentioned before, when it comes to our processing activities, U. S. Is one of our target markets. We will further increase capacities there. OCTG, we will know we have already enough capacity in OCTG and high performance metals. We have our steel mills around the world in Europe and in Brazil, I think. But when it comes to processing activities, It's also in our strategic scope to increase footprint in The U. S. Or into The U. S. As well.

1h 6m 24s

Okay. And second one is on Metal Forming, which is a division that performed in Q3, produced an historically low result. In your view, are the difficulties circumscribed to the auto sector? Or do you see the weakness, the structural weakness, to the auto sector? Or do you see the weakness, the structural weakness extending to other areas? And what could be the timing for a return to more normalized results in of at least EUR 50,000,000 of EBITDA per quarter? Can it be as early as Q4? Or should we wait until H1 or even H2 of next year?

1h 6m 58s

Yes, it's a very good question. You know this activity most of these really negative effects are coming from the automotive component business. And we have presented that we are in a reorganization phase, and we will see and it's a three years program, but we'll see a reasonable figure also already next year and will increase in the next two years. So I would say next year, we can expect 20,000,000 to 30,000,000 plus in automotive components.

1h 7m 49s

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Gerhard Resch for any closing remarks.

1h 7m 58s

Thank you very much for your participation and the wider discussions. As usually, please feel free to contact me after the call in case further questions will come up during the afternoon. Thank you and goodbye. Bye bye.

Key Insights

The company is focusing on sustainable value-enhancing growth, with a strong emphasis on decarbonization and high-quality, technologically advanced products. The first step of the decarbonization project involves replacing two blast furnaces with electric arc furnaces, with a CapEx of $1 billion, 25% already spent, and 60% awarded. The project is expected to ramp up in early 2027.
EBITDA guidance for the fiscal year has been revised to $1.3 billion, including $200 million in one-off items. The company expects a positive free cash flow of slightly above $100 million for the year. CapEx for the next fiscal year is targeted below $1.2 billion, reduced from previous guidance.
Revenue for the first three quarters declined by $650 million year-over-year, driven by lower volumes and price reductions due to cheaper raw materials and energy costs. EBITDA decreased by $300 million, with restructuring costs and one-off items totaling $170 million impacting results.
Market performance varied: Europe remains weak, North America performed well except for a slowdown in OCTG, Brazil saw a slowdown in tool steel production due to high interest rates, and China performed well overall despite some weakness in German OEMs. Strong sectors include railway systems, aerospace, and warehouse solutions.
U.S. tariffs on steel imports are expected to impact the company starting March, with potential costs of $40–$45 million annually in a worst-case scenario. The company is focused on high-quality products that are not produced domestically in the U.S., which may mitigate some tariff impacts.

Recent Transcripts

Revenue and EBITDA declined due to lower volumes and prices.

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The first question comes from Alain Gabriel from Morgan Stanley. Please go ahead.

29m 29s

29m 54s

Sorry, it's very easy. It's mostly volumes.

30m 1s

30m 19s

31m 25s

Thank you. So on your iron ore supply, does anything materially change going forward?

31m 30s

No. Maybe the volumes can increase again. That's the only change.

31m 41s

Next question comes from Tristan Dressler from BNP Paribasen. Please go ahead.

31m 48s

32m 30s

33m 33s

34m 37s

36m 52s

So it's not finally clear how it works, but worst case, we are calculating this, I would say, million to million.

37m 9s

Okay. Thank you. That's very clear. Maybe just a quick follow-up on that.

37m 14s

38m 1s

38m 31s

39m 49s

The next question comes from Michael Maschallinger, Please go ahead.

39m 56s

40m 21s

40m 59s

41m 34s

42m 36s

The next question comes from Bastian Sinegorgi, Deutsche Bank.

42m 45s

43m 32s

44m 44s

44m 58s

46m 25s

47m 15s

49m 18s

50m 14s

The next question comes from Christian Akerbal from Citigroup. Please go ahead.

50m 21s

50m 43s

So far, we understand that with March, the exemption will end and everybody who is importing steel and aluminum into The U. S. Have to pay tariffs.

51m 7s

Okay. So effectively, the Section two thirty two plus the additional 25% tariff is implemented, that will be the effective rate of tariffs on the steel imports?

51m 17s

On the steel imports, the question is who is paying for that? Who is paying for that, yes.

51m 23s

That's clean. And I think I've elaborated on that before.

51m 28s

51m 52s

52m 41s

Okay.

52m 46s

The next question comes from Tommaso Castello from Jefferies.

52m 56s

53m 21s

53m 48s

54m 23s

56m 3s

I see. And just to clarify, when you say the aerospace sector, like the outlook is positive, then it will be reflected in good results from tools deal.

56m 15s

Yes, this is clear. But also parts for aerospace as well.

56m 23s

The next question comes from Christian Oph from Baden Bank.

56m 36s

First, when it comes to quarters on the European level, what do you expect? What the EU will decide at the March and maybe implement at the April? That's the first question.

56m 51s

Quotas on the EU side, okay. Yes. Import quarters. Import quarters.

57m 2s

57m 35s

Okay. Then do you see any kind of impact on the competitive environment in Europe from the bankruptcy of Liberty Steel and all of the subsidiaries there?

57m 47s

58m 33s

59m 11s

1h 1m 47s

We had last three weeks ago, per megawatt hour in Germany. Yes.

1h 1m 58s

And on the personal side, Personal cost side?

1h 2m 2s

1h 2m 42s

1h 3m 14s

1h 4m 33s

The next question comes from Maxine Corge from ODDO PHF. Please go ahead.

1h 4m 40s

1h 5m 9s

1h 6m 24s

1h 6m 58s

1h 7m 49s

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Gerhard Resch for any closing remarks.

1h 7m 58s

Key Insights

The company is focusing on sustainable value-enhancing growth, with a strong emphasis on decarbonization and high-quality, technologically advanced products. The first step of the decarbonization project involves replacing two blast furnaces with electric arc furnaces, with a CapEx of $1 billion, 25% already spent, and 60% awarded. The project is expected to ramp up in early 2027.
EBITDA guidance for the fiscal year has been revised to $1.3 billion, including $200 million in one-off items. The company expects a positive free cash flow of slightly above $100 million for the year. CapEx for the next fiscal year is targeted below $1.2 billion, reduced from previous guidance.
Revenue for the first three quarters declined by $650 million year-over-year, driven by lower volumes and price reductions due to cheaper raw materials and energy costs. EBITDA decreased by $300 million, with restructuring costs and one-off items totaling $170 million impacting results.
Market performance varied: Europe remains weak, North America performed well except for a slowdown in OCTG, Brazil saw a slowdown in tool steel production due to high interest rates, and China performed well overall despite some weakness in German OEMs. Strong sectors include railway systems, aerospace, and warehouse solutions.
U.S. tariffs on steel imports are expected to impact the company starting March, with potential costs of $40–$45 million annually in a worst-case scenario. The company is focused on high-quality products that are not produced domestically in the U.S., which may mitigate some tariff impacts.

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