Switzerland-based rail manufacturer, Stadler Rail, has announced a significant increase in first-half profit, despite challenges posed by the strong Swiss franc and weak financial performance in the same period last year.
Stadler Rail revealed a net profit of 25.6 million Swiss francs ($29.1 million) for the first half of the year, compared to just CHF1.3 million during the same period in 2022. This positive result was achieved despite a 12% decline in revenue, which amounted to CHF1.29 billion.
The company attributes the boost in profit to better interest rates, which improved its financial performance. However, the appreciation of the Swiss franc impacted revenue during this period.
Although earnings before interest and taxes were lower at CHF47.5 million, down from CHF66.8 million in the previous year, this decrease can be partly attributed to a one-off effect of CHF21.3 million resulting from the acquisition of BBR Verkehrstechnik in early 2022.
Stadler Rail acknowledges that its business experiences strong seasonality, with the second half typically generating higher revenue and profitability. While this trend is expected to continue this year, it should be noted that there was a slight shift in favor of the first half in the previous year.
Looking ahead, Stadler Rail forecasts sales between CHF3.7 billion and CHF4 billion for the entire year, with an anticipated EBIT margin of 5.5%—aligning with last year’s performance.