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Investing.com -- Stadler Rail AG (SIX:SRAIL) on Wednesday reported a sharp deterioration in cash flow in the first half of 2025 even as revenue and profit rose, as a buildup of unfinished projects absorbed advance payments from customers.
Free cash flow fell to negative CHF 744.2 million in the first six months of the year, compared with negative CHF 384.7 million a year earlier.
The net cash position swung to negative CHF 406.8 million at the end of June from CHF 368 million at the end of 2024.
Revenue rose to CHF 1.4 billion from CHF 1.3 billion a year earlier. Earnings before interest and taxes increased to CHF 36.9 million from CHF 28.2 million.
The EBIT margin improved to 2.6% from 2.2%. Net profit was CHF 30.9 million, up 12% from CHF 27.5 million in the first half of 2024.
The Swiss train manufacturer said supply chain disruptions linked to flooding in Switzerland, Austria and Spain in 2024 continued to affect deliveries, with 40 suppliers in Valencia hit particularly hard.
Stadler is carrying out a catch-up program, while negotiations with insurers remain unresolved.
Weak economic conditions in Germany also weighed on operations. Stadler signed a collective labor agreement in April securing its Berlin Pankow plant until 2032, with employment guaranteed until 2029.
New orders totaled CHF 1.7 billion, down from CHF 2.5 billion a year earlier, when the company booked a large contract in Saudi Arabia. The order backlog stood at CHF 29.4 billion at mid-year.
By June, Stadler had sold 301 trains with alternative drive technology, accounting for about half of all such deliveries in Europe.
In April, Deutsche Bahn Regio ordered 19 battery-electric units for central Thuringia, and France’s Région Sud ordered eight hybrid units to replace diesel trains.
The Rolling Stock division posted revenue of CHF 1.1 billion, up 9% from a year earlier. Service & Components revenue rose 17% to CHF 270.7 million, while Signalling revenue fell to CHF 21.9 million from CHF 42.3 million despite higher order intake.
Stadler confirmed its outlook for 2025, forecasting revenue growth of more than 10% from last year and an EBIT margin between 4% and 5%. It said revenue is expected to exceed CHF 5 billion in 2026, supported by CHF 250 million in investments in production capacity this year.