Stadler Rail (SRAIL) H1 2024 earnings summary

Executive summary

• Order intake reached CHF 2.5bn, down 45% year-over-year, but exceeded the 1.5x book-to-bill ambition; backlog rose 10% to a record CHF 26.8bn.

• Net revenues remained stable at CHF 1.3bn, with a 1% negative FX impact.

• Profit for the period rose 7% year-over-year to CHF 27.5m, supported by higher interest income and lower tax expenses.

• EBIT margin declined to 2.2% from 3.7% due to order mix, inflation, and higher fixed costs.

• Free cash flow was negative at CHF -384.7m, reflecting advance payment consumption, ramp-up of cash-consuming projects, and dividend payout.

Financial highlights

• EBIT fell 41% to CHF 28.2m; EBITDA down 11% to CHF 89.6m.

• Net cash position decreased from CHF 399m at year-end 2023 to CHF -108m.

• Gross margin slightly lower at 11.9% versus 12.1% in H1 2023.

• Net working capital increased by CHF 376m, mainly due to higher work in progress.

• Equity ratio at 14.5% as of 30 June 2024.

Outlook and guidance

• 2024–2026 guidance: order intake targeted at ~1.5x book-to-bill; net revenues CHF 3.5–3.7bn (2024), CHF 4.0–4.2bn (2025), CHF 5.0–5.5bn (2026).

• EBIT margin expected to be comparable to FY 2023 (~7–8%) in the medium term; CAPEX around CHF 200m annually.

• Dividend payout ratio maintained at 60% of net income.

• Outlook assumes stable supply chains, currency, and geopolitical conditions; guidance confirmed despite disruptions.

• Medium-term EBIT margin goal of 8–9% under normal conditions.