Swiss rail manufacturer Stadler Rail reported a 40% surge in first-half revenue to CHF 1.965 billion, driven by strong demand across its rolling stock and service segments. The company’s shares fell 21.94% to $28.82 on Wednesday, erasing gains from a prior close of $36.92, despite the revenue growth and a 60% increase in order intake to CHF 2.738 billion.
Net income remained essentially flat at CHF 31.2 million, while earnings before interest and taxes more than doubled to CHF 79.5 million, lifting margins to 4.0% from 2.6% a year earlier. However, the company’s guidance for full-year 2026 EBIT margins to exceed 5% fell short of some analyst expectations, contributing to the selloff. Stadler also reaffirmed its mid-term EBIT margin target of 6–8%, with a focus on operational efficiency improvements.
Order backlog expanded to CHF 33.3 billion as of June 30, 2026, reflecting a 14% compound annual growth rate since 2016. The DACH region accounted for 62% of H1 2026 orders, up from 42% in the same period last year, while revenue composition shifted with DACH at 57%, Western Europe at 20%, and Eastern Europe at 17%. Production output rose 11% to CHF 2.577 billion, outpacing revenue recognition due to delivery-based accounting.
The company’s Berlin plant is expected to reach break-even in 2027, while free cash flow improved to negative CHF 54 million from negative CHF 744 million in H1 2025. Net cash position declined to negative CHF 424 million, and net working capital improved to negative CHF 324 million. Capital expenditure totaled CHF 101 million, down from CHF 120 million in the prior-year period.
Stadler’s rolling stock segment generated CHF 1.640 billion in revenue, up 48%, while service and components revenue rose 10% to CHF 297 million. The company’s digital ventures, Stadler Digital Labs, became operational in January 2026 with over 130 employees in Coimbra, Portugal, targeting expansion beyond 300 staff. The joint venture, where Stadler holds a 51% stake, focuses on digital rail solutions.
Major contracts included a consortium win for 350 S-Bahn trains in Berlin, a 15-year service agreement for 8 FLIRT trains in Ireland, and a 20-year service deal for 45 hybrid locomotives with ViaRail in Canada. The company maintained its full-year 2026 guidance for net revenue exceeding CHF 5.0 billion and capital expenditure of approximately CHF 250 million.
