Market environment and business development
The High Performance Metals Division operated in a consistently challenging economic environment throughout the 2025/26 business year. From the start of the reporting period, market conditions were shaped by a persistently weak economy in Europe and restrictive trade policies implemented by the U.S. administration. The division’s management addressed these conditions early on through rigorous cost management and an organizational realignment of the division to sustainably secure competitiveness and profitability. The individual market segments developed as follows over the course of the 2025/26 business year:
The Tooling market segment encompasses the supply of tool steel and represents the division’s largest segment in terms of both volume and value. This segment faced intense global competition and associated price pressure throughout the 2025/26 business year. The division therefore further intensified its focus on product segments at the top end of the quality spectrum as well as on value-added and service activities, such as heat and surface treatments. While demand in Europe remained stable but subdued throughout the 2025/26 business year, business performance in North America was characterized by cautious ordering behavior, not least due to U.S. tariffs. In Brazil, market weakness, which was further exacerbated by Chinese imports, persisted throughout the reporting period. In China itself, however, demand remained at a robust level.
The Industrials market segment encompasses a broad spectrum of specialty steels and machined components used in various industrial applications worldwide. Unlike the Tooling segment, these products are found directly in customers’ end products. In this segment, demand from the automotive industry, particularly for valve steels and engine components, remained subdued throughout the 2025/26 business year. Increased competitive pressure from Asia and U.S. tariff policies further weighed on performance. In contrast, the automotive racing sector—where the division supplies high-performance materials and powders for 3D printing applications—performed very well. The food & beverage, media technology, and mining sectors also performed predominantly positively in the 2025/26 business year.
In the Aerospace and Power Industries market segment, the High Performance Metals Division supplies both specialty materials and forged parts and components, with very strong global market penetration. This segment benefited from strong demand throughout the 2025/26 business year, driven in particular by the European aerospace industry. The noticeable increase in production volumes from North American aircraft manufacturers during the reporting period further supported this positive momentum.
The Oil & Gas, CPI & Renewables market segment encompasses the supply of specialty materials and machined parts to global manufacturers of equipment for oil and natural gas exploration, as well as to the petrochemical and renewable energy industries (NOTE: We have virtually no revenue share in the renewables sector; this is where our focus will lie in the coming months). Business performance in this sector during the reporting period was largely shaped by global uncertainties. Throughout much of the 2025/26 business year, low oil prices, high inventory levels, and trade policy measures led to a decline in exploration activities. Toward the end of the business year, global oil and gas prices rose significantly due to the conflict in the Middle East. Subsequently, the first signs of a recovery in demand for oil and gas exploration products became apparent. The petrochemical industry, however, remained a largely stable market throughout the 2025/26 business year.