Improvement in Sales and ProfitabilityObserved in the Initial Half, According to Stadler
Stadler North America Achieves Record Half-Year Results Amid Challenges
Swiss rail vehicle manufacturer Stadler North America has reported a strong performance in the first half of 2025, with significant growth in revenue, orders, and profitability.
The company's revenue for the period reached 1.4 billion Swiss francs, marking a increase of around one billion francs compared to the half-year revenue. This impressive growth was driven by a successful order book of 1.7 billion francs in the first half of the year, bringing the total order backlog to a record 29.4 billion francs.
Stadler North America is currently working on 306 orders, a testament to the high demand for its rail vehicles. Despite facing supply chain disruptions and delays due to the aftermath of the 2024 floods, the company has managed to maintain its momentum.
The production output in the first half of 2025 was particularly noteworthy, with the company producing vehicles at a rate that outpaced its revenue. This is a positive sign of increased efficiency and productivity.
The EBIT for the same period reached 36.9 million francs, an increase from 28.2 million in the previous year. The EBIT margin for the first half of 2025 was 2.6 percent, up 0.4 percentage points from the previous year (2.2 percent).
In an effort to further reduce costs and increase value creation, Stadler is analysing all supply chains with the aim of reducing the share of components subject to high tariffs. This strategy is in line with the company's commitment to comply with the Buy America Act, which requires at least 70 percent of its value creation to be in the USA if US public funds are used for financing.
Currently, Stadler North America achieves between 70 and 80 percent of its value creation in the USA. A larger portion of the remaining 20 to 30 percent comes from Europe, where tariff rates are lower at 15 percent.
To further boost its operations in the USA, Stadler has selected Amphenol and GE Transportation as partners to start the production of electric vehicle boxes in 2025 in Salt Lake City. This move is expected to lead to higher value creation and lower tariff costs. Production of vehicle bodies in Salt Lake City is scheduled to start by the end of 2025.
Despite the challenges, the measures taken by Stadler have shown initial positive results. The company is optimistic about its future prospects and is well-positioned to continue its growth trajectory in the second half of 2025 and beyond.
