Vossloh Group Demonstrates Robust Performance in Q2 2024

Vossloh Group Demonstrates Robust Performance in Q2 2024

(IN BRIEF) In Q2 2024, Vossloh Group demonstrated strong performance with an 11.7% increase in orders received, totaling €769.6 million, and maintained stable EBIT at €49.5 million, slightly above last year’s €49.3 million. Despite a 6.6% decline in sales revenues to €560.9 million due to lower Chinese project contributions, the EBIT margin improved from 8.2% to 8.8%. Net income rose significantly from €29.4 million to €40.1 million, driven by reduced tax expenses. The group’s order backlog reached a record €905.5 million, and equity increased by 5.5% to €660.3 million. Vossloh remains optimistic for 2024, expecting sales revenues between €1.16 billion and €1.26 billion and an EBIT increase to €100-115 million.

(PRESS RELEASE) WERDOHL, 25-Jul-2024 — /EuropaWire/ —

Key Financial Highlights:

• Orders received rose by 11.7% to €769.6 million.
• Sales revenues amounted to €560.9 million, slightly below last year’s record of €600.6 million.
• EBIT remained stable at €49.5 million, up from €49.3 million.
• EBIT margin improved from 8.2% to 8.8%.
• Significant increase in net income and earnings per share.
• Positive outlook for 2024 with expected increases in EBIT and profitability.

The Vossloh Group has continued its successful trajectory into the second quarter of 2024. The group achieved record orders received at €769.6 million, marking an 11.7% increase from the previous year’s first half total of €688.8 million. As of June 30, 2024, Vossloh’s order backlog reached a new high of €905.5 million, up from €859.4 million the previous year. The book-to-bill ratio improved to 1.37 in the first half of 2024, compared to 1.15 the previous year.

Although group sales in the first half of 2024 were €560.9 million, a 6.6% decrease from last year’s record of €600.6 million, this decline was mainly due to temporarily lower sales from the Chinese project business. An uptick in deliveries of fastening systems is anticipated in the third quarter of 2024, driven by a significant increase in the order backlog in China. Despite the sales decline, EBIT slightly rose to €49.5 million from €49.3 million last year, with the EBIT margin increasing from 8.2% to 8.8%. Net income saw a substantial year-on-year increase from €29.4 million to €40.1 million, primarily due to reduced tax expenses, resulting in earnings per share of €1.96, up from €1.15.

The Vossloh Group’s net assets and financial position also showed positive development. Equity increased by 5.5% year-on-year to €660.3 million, with the equity ratio improving to 47.3% from 43.9% last year. Net financial debt, including lease obligations, stood at €247.0 million as of June 30, 2024, up by €12.3 million from the previous year. The group expects a positive free cash flow in the second half of 2024, likely reducing net financial debt by year-end.

CEO Oliver Schuster highlighted the company’s achievements: “The record order intake and continued positive business development reflect the trust our customers place in our products and services, and result from our strategic efforts to strengthen our market position. Our employees’ outstanding performance has been crucial in achieving this success. We are confident that we will meet our ambitious growth and profitability targets, given the strong foundation and favorable market conditions.”

Divisional Performance:

• Core Components: Orders received were €305.9 million, below the previous year’s €350.5 million, primarily due to the high orders from a new construction project the previous year. The order backlog was €325.8 million, down from €358.8 million. Sales revenues fell to €217.2 million from €263.8 million due to lower contributions from the Fastening Systems business unit, while Tie Technologies remained stable. The book-to-bill ratio increased to 1.41 from 1.33. EBIT remained strong at €33.8 million, with the EBIT margin rising from 12.8% to 15.6%.
• Customized Modules: Orders received surged by 34.7% to €361.3 million, with a record order backlog of €522.6 million. Sales revenues were €263.8 million, down 4.7% from the previous year. Despite this, EBIT increased to €22.5 million, with the EBIT margin improving to 8.5% from 7.9%.
• Lifecycle Solutions: Orders received rose by 33.3% to €117.1 million. The order backlog increased significantly to €65.6 million from €44.9 million. Sales revenues grew to €89.1 million from €76.9 million, driven by the Track Supply subsegment. EBIT improved to €7.3 million, with the EBIT margin climbing to 8.2% from 5.4%.

Employee Growth: The Vossloh Group’s average number of employees increased to 4,093 in the first half of 2024, up from 3,972 the previous year, mainly due to expansions in the Lifecycle Solutions and Customized Modules divisions.

2024 Outlook: The Vossloh Group reaffirms its 2024 guidance, expecting sales revenues between €1.16 billion and €1.26 billion. The favorable market environment should maintain the high sales level of 2023. EBIT is projected to rise to between €100 million and €115 million, with an EBIT margin between 8.3% and 9.5%.

Overall, Vossloh Group’s strong performance and strategic positioning indicate a positive trajectory for continued growth and profitability in 2024.

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 some 75 Group companies in almost 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 2023 financial year, Vossloh generated sales revenues of €1,214.3 million with around 4,000 employees.

Media Contacts:

Contact details for media:
Andreas Friedemann
Phone: +49 (0) 2392 52-608
Email: presse@vossloh.com

Contact details for investors:
Dr. Daniel Gavranovic
Phone: +49 (0) 2392 52-609
Email: investor.relations@vossloh.com

SOURCE: Vossloh