Overview
Vossloh AG (XETRA:VOS) released full-year 2025 financials that were in line with analyst expectations and provided guidance for 2026 that similarly tracked market forecasts. The German rail infrastructure specialist reported revenue growth, higher EBIT for the year, an expanded order backlog and a mixed cash-flow profile.
Top-line and segment performance
For the full year, Vossloh recorded revenue of $1.34 billion, an 11% increase versus the prior year and consistent with consensus estimates. Sales in the fourth quarter rose 24% to $435 million, with management attributing the quarterly increase to contributions from all operating segments.
Segment breakdown for 2025 was as follows:
- Core Components: $561 million, up 21% year-over-year.
- Customized Modules: $601 million, up 7% year-over-year.
- Lifecycle Solutions: $216 million, up 6% year-over-year.
Profitability and margins
Reported full-year EBIT was $111.9 million, a 6% increase from 2024 and in line with analyst estimates. The company reported an EBIT margin of 8.3% for 2025, or 8.9% when presented before purchase price allocation adjustments, compared with 8.7% in the prior year. On a quarterly basis, fourth-quarter EBIT increased 27% to $35.7 million, generating a margin of 8.2%.
Orders and backlog
Order intake for 2025 totaled $1.40 billion, up 2% year-over-year. In the fourth quarter alone, orders climbed 33% to $450 million. The company closed the year with a record order backlog of $1.03 billion, representing a 24% rise from a year earlier and a 21% increase from the prior quarter.
Cash flow and earnings per share
Operating cash flow improved to $167 million versus $136 million in 2024. Free cash flow, however, was negative $118 million for the year compared with positive $87 million in the prior year. Earnings per share for 2025 were $3.24, down from $3.56 in 2024. Shareholders will be presented with a proposed dividend of $1.15 per share, a 5% increase from the prior year payout of $1.10.
2026 guidance
Vossloh set a revenue outlook for 2026 in the range of $1.56 billion to $1.66 billion, with the midpoint implying roughly 20% growth versus 2025. The company expects a slower first half of the year, citing seasonal patterns and challenging weather conditions in Europe as factors affecting near-term performance.
For profitability, management forecast EBITDA between $215 million and $230 million, with a midpoint of $223 million implying an EBITDA margin of 13.8% at the midpoint. EBIT after purchase price allocation is guided to a range of $119 million to $131 million, with a midpoint of $125 million and a corresponding margin of 7.7%.
Concluding note
The full-year 2025 results and the 2026 guidance together provide a consistent picture relative to market expectations: revenue and EBIT aligned with consensus, a record backlog, improved operating cash flow but materially negative free cash flow, and guidance that anticipates a slower start to 2026 because of seasonality and weather headwinds in Europe.