Voestalpine shares rose over 2% Wednesday after the Austrian steelmaker boosted its free cash flow projection while maintaining full-year earnings targets. The company now expects €350-400 million in FCF for fiscal 2026, up from €350 million, citing improved working capital management. Capital expenditures remain steady at €1.15 billion.

Third-quarter EBITDA of €315 million fell short of the €326 million analyst consensus, marking a 13% decline from the prior quarter. Despite this, Jefferies analyst Cole Hathorn noted the stronger cash flow performance, calling it a positive signal amid challenging market conditions. Voestalpine reiterated its full-year EBITDA target range of €1.4-1.55 billion, aligning with market expectations.

The guidance assumes no near-term economic recovery, relying instead on cost-cutting measures from recent restructuring of its Metal Forming and High Performance Metals divisions. Investors appeared to reward the company’s disciplined capital allocation despite persistent macroeconomic headwinds affecting industrial demand across Europe.