Shares of Vossloh AG tumbled by more than 9% on Tuesday following the company's decision to lower its sales and earnings guidance for 2026. Management attributed the revision to weaker-than-expected customer pull-through under existing agreements and delays in project deliveries, which it says have pushed some activity into 2027.
Vossloh now projects 2026 sales revenues in a range of €1.51 billion to €1.61 billion, down from the prior guidance of €1.56 billion to €1.66 billion. For context, the company posted sales of €1.34 billion in the prior year.
The profit outlook was similarly reduced. The company narrowed its expected EBITDA to €195 million to €210 million, versus an earlier range of €215 million to €230 million. The EBIT forecast was cut to €100 million to €110 million from €118.5 million to €131 million. For fiscal year 2025 Vossloh reported EBITDA of €179.4 million and EBIT of €111.9 million.
In explaining the downgrade, Vossloh cited several operational pressures: lower call-offs under framework agreements in certain countries, postponement of deliveries tied to new construction projects into 2027, and elevated procurement and logistics costs that cannot be fully passed through to customers this year. The company also pointed to expenses related to capacity adjustments and planned merger and acquisition activity.
Those adjustments accompanied preliminary first-half 2026 figures. Vossloh reported H1 sales revenues of €710.1 million, up from €582.6 million in the year-earlier period. EBITDA increased to €80.9 million from €74.2 million, while EBIT declined to €32.4 million from €44.9 million.
Despite the weaker near-term guidance, order activity strengthened in the first half. Vossloh recorded orders totaling €828.5 million, compared with €623.7 million a year earlier, and the order backlog in its rail infrastructure business climbed to a record €1.14 billion from €865.8 million previously.
Clear summary - Vossloh has trimmed its 2026 financial targets for sales, EBITDA and EBIT due to softer demand and delayed project deliveries, and said higher procurement/logistics costs and adjustment-related expenses will weigh on results. Preliminary H1 figures show rising sales and EBITDA but lower EBIT, while order intake and backlog expanded.
Key considerations
- Revenue guidance cut to €1.51bn-€1.61bn from €1.56bn-€1.66bn; prior-year sales were €1.34bn.
- EBITDA guidance lowered to €195m-€210m and EBIT to €100m-€110m; FY2025 EBITDA was €179.4m and EBIT €111.9m.
- Order intake and backlog strengthened in H1, with orders of €828.5m and a rail infrastructure backlog of €1.14bn.
Risks and uncertainties
- Lower call-offs under existing framework agreements in certain countries - affects rail infrastructure revenues and project timing.
- Postponement of deliveries linked to new construction projects into 2027 - creates execution and cash flow timing risk for project-related revenues.
- Higher procurement and logistics costs that cannot be fully passed on, plus expenses tied to capacity adjustments and planned M&A activity - pressure on margins and near-term profitability.
Market reaction to the guidance change was swift, reflecting investor concern about the downgraded outlook for the year ahead. At the same time, the enlarged order backlog suggests pipeline strength that could support future revenue once deliveries resume.