EQS-News: Vossloh achieves high sales and EBIT growth in the second quarter of 2025

Vossloh achieves high sales and EBIT growth in the second quarter of 2025

• Sales in Q2 2025 rise by 13.5 percent to €331.5 million; half-year increase of 3.9 percent to €582.6 million
• EBIT in Q2 2025 up 18.9 percent year-on-year to €37.6 million; EBIT for the first half of the year at €44.9 million (previous year: €49.5 million)
• Book-to-bill for the first half of the year at 1.07
• Order backlog as of June 30, 2025, at €865.8 million
• Growth outlook for 2025 confirmed

Werdohl, July 24, 2025. Vossloh AG (“Vossloh”) looks back on a successful first half of 2025, which was marked by significant sales and EBIT growth in the second quarter. Sales rose by 13.5 percent year-on-year to €331.5 million in the second quarter (previous year: €292.0 million) and totaled €582.6 million in the first half of 2025 (previous year: €560.9 million), representing an increase of 3.9 percent. EBIT rose by 18.9 percent year-on-year to €37.6 million in the second quarter. In the first half of 2025, EBIT was €44.9 million, compared with €49.5 million in the first half of 2024. A one-time positive effect of €3.5 million from the transitional consolidation of a Chinese joint venture was offset by similarly sized transaction costs related to the acquisition of Sateba.

"We are on track to achieve our growth targets for the full year 2025. Our order books are well filled, and all three divisions will contribute to annual growth. The continued positive momentum in the rail infrastructure market, supported by global investment programs, allows us to look ahead to the coming years with great confidence," commented Oliver Schuster, CEO of Vossloh AG.

Orders received in the first half of 2025 amounted to €623.7 million, which was as expected below the record level of the previous year (€769.6 million). The book-to-bill ratio of 1.07 continues to underscore strong demand. In the second quarter of 2025, significant orders were won for the supply of rail fastening systems for a high-speed line in China and several tenders related to the expansion of the Algerian rail network. The order backlog as of June 30, 2025, remained at a high level of €865.8 million (June 30, 2024: €905.5 million).

Net income for the first half of 2025 amounted to €34.7 million (previous year: €40.1 million) and earnings per share to €1.50 (previous year: €1.96).

With a slight increase in total assets to €1,520.7 million compared to the end of 2024, the equity ratio remained virtually unchanged at 50.0 percent (December 31, 2024: 50.4 percent). Net financial debt rose seasonally and due to project-related factors to €209.2 million (December 31, 2024: €137.6 million). A significant reduction is expected by the end of the year due to the anticipated high positive free cash flow in the second half of the year.

Core Components: Good sales and EBIT performance in the second quarter 
In the Core Components division, sales in the first half of 2025 were at €214.3 million and almost at the previous year's level (€217.2 million). Growth of 14.1 percent was achieved in the second quarter of 2025. This was mainly due to the noticeable upturn in revenues in the Fastening Systems business unit, particularly in the Africa region. At Core Components, orders received of €258.8 million were below the high prior-year figure of €305.9 million. Nevertheless, the order backlog as of June 30, 2025, at €332.9 million exceeded slightly the prior-year figure (June 30, 2024: €325.8 million). The book-to-bill ratio remained at a high level of 1.21. EBIT in the first half of 2025 amounted to €21.1 million, remaining below the high prior-year figure of €33.8 million. In the second quarter of 2025, EBIT amounted to €14.8 million (prior-year quarter: €16.0 million) despite a lower-margin project mix in the Tie Technologies business unit and the first-time recognition of a brand license fee by Vossloh AG this year. The high prior-year figure was positively influenced by the reversal of provisions.

Customized Modules with significant increase in sales and earnings
Thanks to strong growth momentum in the second quarter, sales in the Customized Modules division reached a record level of €282.5 million in the first half of the year, up 7.1 percent on the comparable prior-year figure (€263.8 million). Orders received in the first half of 2025 amounted to €259.6 million (previous year: €361.3 million), while the order backlog at €498.9 million was only slightly below the record level of €522.6 million in the previous year. EBIT in the first half of the year rose from €22.5 million to €32.0 million year-on-year thanks especially to a strong operating performance. The increase was primarily attributable to higher earnings contributions from the Swedish site. In addition, EBIT benefited from a positive effect from the transitional consolidation of a Chinese joint venture, while the aforementioned charging of brand license fees had a negative impact. The EBIT margin climbed from 8.5 percent to 11.3 percent.

Lifecycle Solutions with high order intake and significant increase in revenues
The Lifecycle Solutions division also reported significant revenue growth of 14.2 percent in the first half of the year. Revenue rose from €89.1 million in the previous year to €101.7 million in the first half of 2025. The increase was mainly due to additional sales in rail asset and turnout service, rail milling, and high-speed grinding. At €123.5 million, orders received slightly exceeded the previous year's figure of €117.1 million. The order backlog at the end of the first half of the year was €48.4 million (June 30, 2024: €65.6 million). The multi-year framework agreements with a total value of well over €100 million that Vossloh concluded with Deutsche Bahn in the previous year are still only partially included in the order backlog. EBIT in the first half of 2025 amounted to €1.7 million and, as expected, did not reach the exceptionally high prior-year figure of €7.3 million. The decline is primarily attributable to an exceptionally high-margin project mix, particularly in Sweden last year, and to the brand license fees incurred for the first time this year.

Number of employees continues to rise significantly

In the first half of 2025, the average number of employees in the Vossloh Group was 4,515 (prior-year period: 4,093). The increase is primarily attributable to the Customized Modules and Lifecycle Solutions divisions.

Outlook for 2025 confirmed in the existing group structure

Thanks to the successful first half of the year and in view of the well-filled order books, the Execuitve Board is confirming its full-year outlook. For the current group structure, sales revenues of between €1.25 billion and €1.325 billion are expected, based primarily on growth in China, Germany, the US, and Africa. The Lifecycle Solutions division can once again expect the strongest growth rates. Against this backdrop, Vossloh continues to target EBIT of €110 million to €120 million. The EBIT margin is still forecast to be in the range of 8.5 percent to 9.5 percent.

The forecast does not yet take into account the acquisition of Sateba. The closing process is in its final phase. The acquisition is expected to be completed in the coming months. Vossloh anticipates an average monthly sales contribution of approximately €30 million in 2025 and an average monthly EBIT contribution before effects from the accounting allocation of the purchase price for Sateba (PPA effects) of approximately €4 million. These effects will be determined after the acquisition is completed and are expected to significantly impact EBIT in the first 24 months after the transaction is completed. Like Vossloh's business in Europe, Sateba's business is subject to seasonal fluctuations. Vossloh will specify its forecast for fiscal year 2025, including Sateba, upon completion of the acquisition.

Development of key financial figures:

Contact details for media and investors:
Ivo Banek
E-Mail: presse@vossloh.com

Dr. Daniel Gavranovic
E-Mail: investor.relations@vossloh.com

Phone: +49 (0) 2392 52-609

Vossloh is a global technology group which for around 140 years has stood for quality, safety, customer focus, reliability and innovative strength. With its comprehensive range of rail-related products and services, Vossloh ranks among the world market leaders in this sector. Vossloh offers a uniquely broad range of products and services under one roof: Rail fastening systems, concrete ties, switch systems and crossings as well as innovative and increasingly digital-based services for the entire life cycle of rails and switches. Vossloh uses its systemic understanding of the track to address the central customer need of "availability of the rail track".

Vossloh products and services are in use in more than 100 countries. With almost 80 Group companies in nearly 30 countries and over 40 production locations, Vossloh is active locally worldwide. Vossloh is committed to sustainable corporate governance and climate protection and with its products and services makes an important contribution to the sustainable mobility of people and goods.

The Group's activities are organized into the three divisions Core Components, Customized Modules and Lifecycle Solutions. In the 2024 financial year, Vossloh generated sales revenues of €1,209.6 million with around 4,200 employees.