Stadler Rail (SRAIL) H1 2025 earnings summary

Executive summary

• Net revenue reached CHF 1.4 billion in H1 2025, up 8% year-over-year, with profit for the period at CHF 30.9 million, a 12% increase compared to H1 2024, despite ongoing supply chain disruptions from 2024 flooding events.

• EBIT margin improved to 2.6%, up from 2.2% in H1 2024, with EBIT rising to CHF 36.9 million, a 31% year-over-year increase.

• Order intake was CHF 1.7 billion, with deferrals pushing some contract awards to H2; order backlog remained stable at CHF 29.4 billion.

• Free cash flow was negative at CHF -744.2 million, reflecting ramp-up in production, advance payment consumption, and seasonality.

• Major operational challenges included supply chain delays from natural disasters and weak economic conditions in Germany.

Financial highlights

• EBIT increased to CHF 36.9 million, with margin at 2.6%, and net income rose 12.3% to CHF 30.9 million, supported by positive currency effects but offset by higher tax expenses.

• Gross margin was 11.6%, slightly down from 11.9% in H1 2024.

• EBITDA reached CHF 95.4 million, up 6% year-over-year.

• Net cash position declined to CHF -775 million from CHF 368 million at year-end 2024, due to production ramp-up and dividend payouts.

• Net working capital increased by CHF 720 million, mainly from higher work in progress, but improved to CHF -290.9 million from CHF -1,010.9 million at year-end 2024.

Outlook and guidance

• Full-year order intake outlook confirmed, with book-to-bill ratio guidance of 1.0–1.5.

• Net revenue expected to grow over 10% in 2025 versus 2024, with targets of over CHF 5.0 billion in 2026 and CHF 5.5 billion mid-term.

• EBIT margin guidance set at 4–5% for 2025, rising to 6–8% mid-term.

• Free cash flow in 2025 may remain negative due to increased production output and work in progress.

• Dividend policy maintained at around 60% payout of consolidated net profit.