Stadler Rail (SRAIL) H2 2024 earnings summary

Executive summary

• 2024 was marked by three major environmental disasters in Switzerland, Austria, and Spain, causing significant production delays, supply chain disruptions, and shifting CHF 350 million in revenue to 2025 and 2026.

• Despite these challenges, order intake remained strong at CHF 6.4 billion, and the order backlog rose to CHF 29.2 billion, providing long-term visibility.

• Revenue for 2024 was CHF 3.3 billion, with profit at CHF 55 million and EBIT at CHF 100.5 million (3.1% margin), down from 5.1% the previous year.

• The company reinforced its leadership in alternative propulsion systems, expanded in strategic markets including Europe, the U.S., and Saudi Arabia, and delivered approximately 500 vehicles.

• Free cash flow improved to CHF 140.1 million after a negative first half, and net cash position remained stable.

Financial highlights

• Revenue decreased by 10% year-over-year to CHF 3.3 billion due to disaster-related delays.

• EBIT dropped to CHF 100.5 million (3.1% margin), with profit for the year at CHF 55 million, down 60% year-over-year.

• Free cash flow was CHF 140.1 million, recovering from negative H1 2024.

• Net cash position remained stable at CHF 368 million, with net working capital improving by CHF 155 million to below CHF 1 billion.

• CapEx was CHF 233 million, focused on capacity expansion and R&D.

Outlook and guidance

• Revenue and EBIT margin are expected to increase in 2025, with sales projected to exceed CHF 5 billion by 2026 and EBIT margin targeted at 6–8% mid- to long-term.

• EBIT margin guidance for 2025 is 4-5%, with a book-to-bill ratio guidance of 1.0-1.5x.

• Investments of CHF 250 million are planned for 2025, with CHF 200 million annually thereafter.

• Dividend proposal for 2024 is CHF 0.20 per share (CHF 20 million), down from CHF 0.90 per share last year.

• 2025 free cash flow may be negatively impacted by increased production output and work in progress.