Railcare Group (RAIL) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were SEK 178.1 million, nearly flat year-over-year, with an operating profit of SEK 18.1 million and a margin of 10.2%.

• Contracting segment sales declined due to fewer major projects, but Transport and Technology segments saw strong growth.

• New stand-by/clearance locomotive operations established in Gävle and Ånge, with further assignments planned in Borlänge and Hallsberg.

• UK operations face challenges from low volumes and ongoing contract negotiations.

Financial highlights

• Q2 2025 net sales: SEK 178.1 million (Q2 2024: SEK 179.8 million); EBIT: SEK 18.1 million (Q2 2024: SEK 17.1 million).

• H1 2025 net sales: SEK 301.2 million (H1 2024: SEK 309.2 million); EBIT: SEK 22.5 million (H1 2024: SEK 32.2 million).

• Profit for Q2: SEK 8.0 million (Q2 2024: SEK 10.6 million); EPS Q2: SEK 0.33 (Q2 2024: SEK 0.44).

• Cash flow from operations in Q2: SEK 33.2 million; total cash flow Q2: SEK -21.3 million.

• Equity/assets ratio at period end: 26.1% (Q2 2024: 27.9%).

Outlook and guidance

• Targeting SEK 1,000 million in sales and a 13% operating margin by 2027.

• Continued emphasis on sales growth through new construction, life extension, and maintenance.

• High maintenance demand expected, with funding allocated in infrastructure plans.

• Focus on completing in-house developed MPV machines and expanding external assignments in Technology.

• Ongoing negotiations with Network Rail and alternative UK arrangements are critical for future UK business.