Vossloh reports strong Q2 with 19% EBIT beat and double-digit sales growth

Published 24/07/2025, 07:36
© Reuters.

Investing.com -- German rail infrastructure company Vossloh (ETR:VOSG) AG (ETR:VOS) on Thursday reported strong second-quarter results with sales up 13% year-over-year to €332 million, exceeding consensus estimates by 4%.

The company’s EBIT increased by 19% year-over-year to €37.5 million, beating analyst expectations by 19% and delivering a margin of 11.3%, up from 10.8% in the same period last year.

Growth was primarily driven by the Customized Modules segment, which saw a 20% year-over-year increase, and Core Components, which grew by 14%.

The Lifecycle Solutions segment showed more modest growth of 5%, hampered by sluggish call-offs in Germany due to delays in budget discussions.

Despite the strong quarterly performance, order intake declined by 32% year-over-year to €285 million, though this was still 3% above consensus estimates. The book-to-bill ratio slipped to 0.9x compared to 1.4x in the first quarter of 2025.

The order backlog stood at €865 million, representing a 4% year-over-year decrease and a 7% quarter-over-quarter decline.

Operating cash flow fell to €3.5 million from €26.0 million in the previous year, while free cash flow turned negative at -€6.9 million compared to €24.9 million a year ago.

Management confirmed its full-year guidance, which implies 9% sales growth in the second half of 2025, excluding the Sateba acquisition, which is expected to close after summer.

The company anticipates demand from China to materialize toward year-end, supported by solid visibility on the order backlog.

Vossloh’s first-half 2025 EBIT margin reached 7.7%, with the second quarter’s strong performance pushing the figure into double-digit territory.

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