Vossloh (VOS) Q3 2024 earnings summary

Executive summary

• Profitability trend remained strong in Q3 2024, with EBIT margin rising to 9.2% and all divisions achieving double-digit EBIT margins after nine months.

• Orders received in Q3 2024 stable at €256.2 million; cumulative nine-month orders up 8.5% year-over-year to €1,025.7 million.

• Order backlog at €852.3 million, up 9.0% year-over-year; major framework agreements with Deutsche Bahn signed but not yet included in backlog.

• Sales revenues for Q3 2024 at €298.7 million (down from €325.3 million in Q3 2023); nine-month sales at €859.6 million (down from €925.9 million), mainly due to declines in China and Mexico.

• Earnings per share after nine months rose to €2.70 from €1.68 year-over-year.

Financial highlights

• EBIT for nine months at €77.1 million, flat year-over-year despite lower sales and Sateba transaction costs; EBIT margin increased to 9.0% from 8.3%.

• Net income rose to €56.6 million from €43.9 million, mainly due to lower tax and interest expenses.

• Free cash flow for Q3 2024 at €38.9 million (Q3 2023: €10.5 million); nine-month FCF at €34.2 million (prior year: €48.0 million).

• Capital expenditure increased to €42.5 million (prior year: €38.9 million), mainly for new production sites and machines.

• Equity ratio remained high at 46.3% as of 9/30/2024; net financial debt including leases down €10.6 million year-over-year.

Outlook and guidance

• 2024 sales revenues expected between €1.16 billion and €1.26 billion, roughly in line with 2023.

• EBIT forecast for 2024 raised to €100–115 million, with EBIT margin expected between 8.3% and 9.5%.

• Value added guidance for 2024 set at €7.5–22.5 million, with WACC increased to 9.5%.

• Long-term ambition to exceed €2 billion in sales and achieve double-digit EBIT margin by 2030, supported by organic growth and acquisitions.