Vossloh reports continued strong sales and EBIT growth in the third quarter

The first nine months were successful for Vossloh AG (“Vossloh”), highlighted by significant sales and EBIT growth in the third quarter. Group sales rose by 9.1 percent year-on-year to €325.9 million in the third quarter (previous year: €298.7 million) and totaled €908.5 million after nine months of 2025 (previous year: €859.6 million), representing an increase of 5.7 percent. All divisions contributed to growth after nine months. EBIT improved by 13.4 percent year-on-year to €31.3 million in the third quarter, with the EBIT margin rising accordingly to 9.6 percent in the reporting quarter (previous year: 9.2 percent). Cumulative EBIT after nine months of 2025 amounted to €76.2 million, roughly matching the previous year's level (previous year: €77.1 million).

“The noticeable improvements in sales revenues and EBIT in the third quarter underpin our confidence for the full year 2025. Despite increasing global uncertainties, the market for rail infrastructure remains intact and demand for our products and services remains high. The integration of Sateba will further strengthen our position as a globally active and leading company in rail infrastructure, particularly in Europe," comments Oliver Schuster, CEO of Vossloh AG.

Orders received after nine months of 2025 cumulated to €948.5 million, which was, as expected, below the record level of the previous year (€1,025.7 million). In a strong third quarter, Orders received were up by 26.8 percent compared with the same period of the previous year. The Book-to-bill ratio of 1.04 after nine months underscores the sustained high demand in the dynamic rail infrastructure market. In the third quarter of 2025, the Company secured higher orders for turnout systems in Sweden and Portugal, as well as for the delivery of rail fastening systems for a high-speed line in China. At €856.3 million, the Order backlog as of September 30, 2025, remained at a high level and was slightly above the comparable prior-year figure of €852.3 million.

Net income after nine months of 2025 amounted to €51.7 million, slightly below the previous year's figure of €56.6 million, mainly due to higher interest expenses. Earnings per share of €2.12 (previous year: €2.70) were also affected by the higher number of outstanding shares in 2025.

High free cash flow in the third quarter

With total assets up to €1,525.7 million compared to the end of 2024, the Equity ratio improved slightly to 50.9 percent (December 31, 2024: 50.4 percent). Net financial debt rose seasonally and due to projects in the first three quarters to €186.5 million (December 31, 2024: €137.6 million). At year-end, debt will increase significantly following the completion of the Sateba transaction on October 1, 2025. The ratio of net financial debt to EBITDA (net leverage) is expected to be below 2.75 at the end of the year. In the third quarter, Vossloh generated a high free cash flow of €44.4 million (previous year: €38.9 million). A high positive free cash flow is also expected in the final quarter.

Core Components: Strong sales and EBIT performance in the third quarter

Following strong growth of 23.0 percent in the reporting quarter, Sales revenues in the Core Components division after nine months of 2025 were up by 6.7 percent year-on-year at €347.1 million (previous year: €325.2 million). As in the first half of the year, Vossloh recorded a significant increase in the Fastening Systems business unit, while Tie Technologies remained noticeably below the previous year's level. Orders received at Core Components were at €363.7 million, still below the high prior-year figure of €414.0 million. The same applies to the Order backlog, which amounted to €299.3 million as of September 30, 2025 (September 30, 2024: €317.7 million). The Book-to-bill ratio remained at a good level of 1.05. EBIT after three quarters of 2025 amounted to €38.9 million, down from the high prior-year figure of €49.8 million, which was also positively influenced by the reversal of provisions. In the third quarter of 2025, despite a lower-margin project mix in the Tie Technologies business unit and the first-time collection of a brand license fee by Vossloh AG this year, EBIT of €17.8 million was achieved, noticeably above the prior-year quarter (€16.0 million).

Customized Modules with continued positive development

The substantial growth in sales and earnings in the Customized Modules division continued in the third quarter. After nine months, Sales revenues amounted to €427.1 million, up by 6.9 percent on the same period of the previous year (€399.5 million). While Orders received remained below the high prior-year figure (€476.4 million) as expected at €432.6 million, the Order backlog rose to €524.8 million including the Chinese company (September 30, 2024: €500.6 million). EBIT after nine months increased from €40.5 million to €42.8 million. As already reported at mid-year, the increase was based on higher earnings contributions from the Swedish site and a positive effect from the transitional consolidation of a Chinese joint venture. The offsetting effect of the brand license fee had a counteracting impact. The EBIT margin remained at a high level of 10.0 percent.

Lifecycle Solutions continues to see strong demand and solid sales growth

In the Lifecycle Solutions division, Vossloh achieved sales revenues growth of 7.5 percent to €159.5 million after nine months (previous year: €148.4 million). Growth was mainly achieved in the Maintenance, One-stop shop, and Machine sales subsegments. In contrast, revenue development in Germany after nine months fell significantly short of expectations and was also below the prior-year level. At €176.2 million, Orders received significantly exceeded the prior-year figure of €158.2 million. By contrast, the Order backlog as of September 30, 2025, declined to €42.9 million (previous year: €46.3 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 this figure. Due to the exceptionally high-margin project mix in the previous year, particularly in Sweden, and the aforementioned brand license fee this year, EBIT in the reporting period was €8.5 million, which, as expected, did not reach the high previous year's figure of €15.4 million.

Number of employees continues to rise significantly

As of September 30, 2025, the number of employees in the Vossloh Group was at 4,608 (previous year's reporting date: 4,267). The increase was mainly attributable to the Customized Modules division.

Forecast for 2025 specified following completion of Sateba acquisition

Against the backdrop of the now completed acquisition, the Executive Board specified the existing full-year forecast for sales and EBIT as of October 1, 2025. Based on current business development in the new group structure, Vossloh now expects group sales including Sateba of €1.33 to €1.4 billion for 2025 (previously without Sateba: €1.25 to €1.325 billion) and consolidated EBIT before effects from the purchase price allocation (PPA effects) for Sateba of €116 to €126 million (previously without Sateba: €110 to €120 million). The specified forecast already takes into account transaction and integration costs in connection with the acquisition of Sateba, negative translation effects due to current exchange rate developments, and slightly negative effects from the introduction of additional or increased tariffs. The EBIT margin (before PPA effects for Sateba) in the Vossloh Group is still expected to be 9 percent (+/- 0.5 percentage points) in 2025. The PPA effects for Sateba are expected to have a significant negative impact on EBIT in the first 24 months after closing.

Additional growth potential and improved profitability thanks to Sateba integration

With Sateba, Vossloh is expanding its portfolio of solutions from a single source in Europe and deepening the group's system expertise and value creation. For full year 2025, the company expects Sales revenues of between €330 million and €350 million. The Vossloh Group forecast only includes the share of sales attributable to the fourth quarter. The acquisition supports the long-term profitability target of a double-digit EBIT margin.