Vossloh narrows guidance to low end after soft third quarter

Vossloh AG (ETR:VOS) reported third-quarter results with revenue growth of 16% year-over-year to €377 million, matching analyst expectations of €378 million, as the company faced slower project execution amid global uncertainties and difficult financing conditions.

The German rail infrastructure company’s earnings before interest and taxes fell 23% to €24 million, below the consensus estimate of €26 million. The EBIT margin declined to 6.4% from 9.6% in the prior-year period and 8.1% in the second quarter of 2026.

The profitability decline reflected higher energy and material costs moving through the supply chain, along with transaction costs from smaller acquisitions that generated minimal revenue contributions this year.

Revenue growth was driven by the consolidation of Sateba, while project execution and framework call-offs remained weak. The Core Components division posted revenue of €190 million, up 43% year-over-year, while Customized Modules fell 4% to €139 million and Lifecycle Solutions declined 2% to €57 million.

Order intake reached €326 million, flat compared to the prior year and 11% below analyst estimates of €364 million. The order backlog stood at €1,094 million, up 28% year-over-year but down 4% from the previous quarter.

Operating cash flow dropped to €6.4 million from €61.5 million in the prior-year period. Earnings per share fell 68% to €0.20, compared to analyst expectations of €0.51.

Management narrowed its full-year guidance to the low end of the range for both EBIT and EBITDA at €100 million. This implies fourth-quarter EBIT of €43 million, representing 22% year-over-year growth and 79% sequential growth at a margin of 9.4%.