Stadler Rail (SRAIL) H2 2025 earnings summary

Executive summary

• Order intake in 2025 reached CHF 6.1 billion, maintaining a high level and exceeding strategic targets, with a book-to-bill ratio of 1.7x and order backlog at a record CHF 32.3 billion.

• Revenue increased by 13% year-over-year to CHF 3.7 billion, with a 15% rise adjusted for currency effects, and EBIT margin improved to 4.4%, up 1.3 percentage points from the previous year.

• Net income nearly doubled year-over-year, reaching CHF 100.7 million.

• Business stabilized despite supply chain disruptions from 2024 natural disasters, economic headwinds in Germany, and a strong Swiss franc.

• Strengthened market position in alternative drives and expanded Service & Signalling segments, with significant market wins in Europe and beyond.

Financial highlights

• EBIT margin improved to 4.4% from 3.1% in 2024, within the 2025 target range.

• Free cash flow for 2025 was negative at -CHF 588 million, but positive CHF 155.9 million in H2; turned positive at CHF 140 million for the year in some reports.

• Net cash position decreased to CHF -275 million due to ramp-up in production and increased working capital.

• CapEx reached CHF 589 million in some reports and CHF 278 million in others, focused on capacity expansion, technology, and R&D.

• Dividend proposal of CHF 50 million (CHF 0.50/share) for 2025, up from CHF 20 million (CHF 0.20/share) last year.

Outlook and guidance

• Revenue for 2026 and beyond expected to exceed CHF 5 billion, with 95% already secured in the order book.

• EBIT margin guidance for 2026 is above 5%, with a medium-term target of 6%-8% as supply chain normalizes.

• Investments of CHF 250 million planned for 2026, then CHF 200 million annually thereafter.

• Book-to-bill ratio expected to remain in the 1x-1.5x range, supporting sustainable growth.

• Free cash flow in 2026 may be negatively impacted by increased production output and work in progress.