Vossloh achieves record orders received and significant EBIT increase in the 2024 financial year

 Vossloh achieves record orders received and significant EBIT increase in the 2024 financial year

• Orders received increase by 12.1 % to €1,364.9 million
• Sales revenues again at a record level of €1,209.6 million in 2024
• EBIT rises to over €100 million for the first time in more than 10 years,
  EBIT of €105.2 million corresponds to an improved EBIT margin of 8.7 %
• Free cash flow improved by 21 % to €86.0 million
• Increased dividend proposal of €1.10 per share
• Vossloh expects profitable growth to continue in 2025

Werdohl, March 27, 2025. Vossloh AG ("Vossloh") is continuing the positive development of recent years. The company achieved record orders received and a significant increase in operating earnings (EBIT) in 2024. Vossloh continues to benefit from the long-term, extensive investment programs to sustainably modernize and strengthen the environmentally friendly rail transport mode. In view of this, the Group therefore expects substantial sales growth in the coming years. In a consolidating market environment, further inorganic growth can additionally strengthen this trend.

Orders received rose by 12.1 percent to €1,364.9 million in 2024, a new all-time high in Vossloh's rail infrastructure business. In addition to increasing demand in Europe, high orders received in African countries, particularly in Morocco and Algeria, contributed to this very positive development. At €836.2 million, the order backlog as of December 31, 2024, also reached a new all-time high at the end of a year (previous year: €761.2 million).

At €1,209.6 million, group sales in the 2024 financial year almost reached the previous year's record level of €1,214.3 million. Despite the exceptionally high sales growth in 2023, Vossloh was able to keep sales revenues stable, particularly thanks to dynamic growth in Europe, especially in Germany and partly also due to acquisitions in Sweden. Sales increases, particularly in France and the USA, almost offset the expected mainly project-related declines in sales in Mexico, China and Australia.

In the reporting year, earnings before interest and taxes (EBIT) exceeded the €100 million mark for the first time in over 10 years. The increase from €98.5 million to €105.2 million was mainly due to an improved project mix in the Customized Modules and Lifecycle Solutions divisions. The corresponding margin rose to 8.7 percent (previous year: 8.1 percent).

The situation has noticeably improved again, also in key balance sheet items. While the equity ratio increased to 50.4 percent, net financial debt including lease liabilities decreased significantly to €137.6 million (December 31, 2023: €219.5 million). This was partly due to a strong improvement in free cash flow, which increased by 21 percent to €86.0 million. Additionally, the proceeds from the capital increase carried out in November 2024 also contributed significantly to this development.

Trend-setting M&A activities in 2024

In 2024, Vossloh initiated the largest transaction in the company's history to date with the acquisition of the leading European concrete tie manufacturer Sateba. The Executive Board continues to expect the acquisition to be completed in spring 2025. In addition, Vossloh succeeded in significantly expanding its attractive service business over the past year through the acquisitions of France Aiguillages Services and the Scandinavian Track Group.

"Despite a challenging geopolitical and economic environment, 2024 was again a very successful year for Vossloh. We are benefiting from global infrastructure programs aimed at promoting environmentally friendly rail mobility. Equally crucial is our high level of agility as a market and technology leader. We owe this to our innovative strength, our excellent product and service portfolio and the commitment of our more than 4,000 employees," comments Oliver Schuster, CEO of Vossloh AG. "With the acquisition of Sateba, we are significantly expanding our product portfolio in Europe and strengthening our position as a solution provider for rail infrastructure around the rail track. In this way, we will be in an even better position in the future to support our customers in overcoming the enormous challenges associated with the desired shift of traffic to rail."

The shareholders should also benefit from the success of the past financial year. The Executive Board and Supervisory Board will therefore propose to the Annual General Meeting an increased dividend of €1.10 per share (previous year: €1.05 per share).

Core Components with strong EBIT margin and declining sales revenues

Orders received in the Core Components division amounted to €532.5 million in 2024 (previous year: €542.7 million). The order backlog as of December 31, 2024 amounted to €293.8 million (previous year's reporting date: €262.1 million). As expected, sales revenues were unable to match the extraordinarily high level of the previous year, which was largely characterized by major projects in Mexico and China and fell by 15.2 percent to €463.4 million (previous year: €546.7 million). However, the EBIT margin increased noticeably from 12.8 percent to 14.6 percent thanks to a significant improvement in profitability in the Tie Technologies business unit due to higher utilization of production capacity in the USA. EBIT itself amounted to €67.6 million after €69.8 million in the previous year.

Customized Modules achieves record high in orders received

Orders received in the Customized Modules division rose dynamically by 26.5 percent to €662.8 million (previous year: €524.1 million), reaching an all-time high due in particular to new orders in Morocco, Algeria and the Middle East. At €525.6 million, the order backlog at the end of the year also exceeded the previous year's figure of €461.3 million. At the same time, sales revenues rose from €537.4 million to a new all-time high of €561.2 million. This positive development was primarily driven by growth in France and Germany. This, as well as additional retroactive price adjustments, was reflected in an increased EBIT of €55.6 million (previous year: €42.7 million). The EBIT margin rose from 7.9 percent to 9.9 percent.

Lifecycle Solutions with significant increase in sales revenues and earnings

The Lifecycle Solutions division also recorded a strong increase of 12.9 percent in orders received to €198.1 million (previous year: €175.5 million). At €28.9 million, the order backlog at the end of 2024 was below the previous year (€40.8 million). Framework agreements with a total value of well over €100 million, which Vossloh concluded with Deutsche Bahn in 2024, are only included in the order backlog to a small extent. Sales revenues in the Lifecycle Solutions division rose strongly to €204.3 million (previous year: €163.5 million). This was mainly due to growth in Germany, Denmark and Sweden. A total of €11.6 million is attributable to the Scandinavian Track Group, which was included in the scope of consolidation for the first time. The division's EBIT increased significantly to €19.0 million (previous year: €11.6 million). The corresponding margin rose to 9.3 percent (previous year: 7.1 percent).

Further improvement in the share of ecologically sustainable activities

In accordance with the EU Taxonomy Regulation, 100 percent of sales revenues were again classified as taxonomy-eligible. In terms of taxonomy-aligned sales, and thus ecologically sustainable activities, Vossloh has further improved and can report a share of 67 percent (previous year: 63 percent). In both categories, Vossloh is one of the best listed companies in Germany. In addition, the annual report published today contains a sustainability report for the first time, which was prepared in accordance with the EU's Corporate Sustainability Reporting Directive (CSRD). By implementing the CSRD requirements at an early stage, Vossloh is underlining the central role that sustainability and transparency play in the company.

Employees

In 2024, the average number of employees grew to 4,194 compared to 3,999 in the previous year. The increase of around 5 percent is mainly attributable to the Lifecycle Solutions division.

Outlook for the financial year 2025

Thanks to the strong order backlog, Vossloh's Executive Board anticipates further significant operational growth in 2025. Based on the current group structure, sales revenues of between €1.25 billion and €1.325 billion are forecast. A significant increase in sales is expected in China, the USA and Germany in particular. The Lifecycle Solutions division can once again expect the strongest growth rates. Against this backdrop, the Executive Board expects Vossloh to generate EBIT of between €110 million and €120 million. The EBIT margin is forecast to be in the range of 8.5 percent to 9.5 percent.

Takeover of Sateba provides additional growth boost

Based on the closing of the transaction by the beginning of May, Vossloh anticipates sales revenues of between €1.475 billion and €1.575 billion for the enlarged group in 2025. EBIT (before effects from the accounting allocation of the purchase price for Sateba) is expected to be between €140 million and €155 million. If the transaction is not completed by the beginning of May, Vossloh will specify its expectations for the current financial year in due course.

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.