Vossloh (VOS) Q3 2023 earnings summary

Executive summary

• Nine-month sales reached a record €925.9 million, up 22.4% YoY; EBIT rose to €76.9 million, with growth across all divisions.

• Sales and EBIT guidance for FY 2023 was raised on October 19; the mean EBIT forecast implies ~24% YoY growth.

Financial highlights

• Q3 sales were €325.3 million, up 16.3% YoY; Q3 EBIT was €27.6 million, noticeably above the prior year.

• 9M EBITDA increased to €122.2 million from €92.8 million; net income rose to €43.9 million from €38.8 million, and EPS to €1.68 from €1.62.

• 9M free cash flow was €48.0 million versus negative €46.5 million; improvement reflected higher EBIT and a smaller working-capital build-up.

Outlook and guidance

• FY 2023 sales guidance: €1.175 billion–€1.225 billion, versus €1,046.1 million in 2022; double-digit sales growth expected at Group level.

• FY 2023 EBIT guidance: €94 million–€100 million, versus €78.1 million in 2022; expected EBIT margin is 7.8%–8.3% at the sales forecast midpoint.

• FY 2023 value-added guidance: €14 million–€20 million, despite WACC increasing to 8.5% from 7.0%.