Original-Research: Vossloh AG (von Quirin Privatbank Kapitalmarktgeschäft): BUY

Classification of Quirin Privatbank Kapitalmarktgeschäft to Vossloh AG

Despite short-term volatility, the growth trajectory remains intact

Vossloh delivered robust full-year 2025 results, with revenue advancing 11.0% to EUR 1,343.2m against a demanding comparable. Adjusted EBIT grew 13.7% yoy to EUR 119.6m, maintaining the group EBIT margin at solid 8.9% (8.7%). The group generated Free Cash Flow of EUR 98.8m (+15% yoy), demonstrating healthy cash conversion despite the step-up in working capital that accompanies Sateba’s integration.  Management’s 2026 guidance implies revenue growth of 16-24% yoy and EBITDA margin improvement up to 114bps. We view this as achievable and potentially conservative if Sateba integration proceeds on schedule and the German Sondervermögen spending accelerates as anticipated. Our 2026e revenue estimate of EUR 1,605m and adjusted EBIT of EUR 124.5m sit at the mid-point of the guidance. The investment case for Vossloh in 2026 and beyond is as compelling as at any point in the company’s history. Three convergent forces a) Europe’s most ambitious rail infrastructure program in a generation, b) the structural underinvestment in track maintenance that creates a secular demand floor, and c) Vossloh’s newly complete product portfolio spanning the entire track lifecycle combine to create a multi-year earnings growth trajectory that we believe is materially underpriced at current valuations. We maintain our Buy rating with a reduced TP of EUR 86 (94), applied by our ROE/COE valuation approach.
 

You can download the research here: VOSSLOH_AG_202603240

For additional information visit our website: https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
[email protected]
https://research.quirinprivatbank.de/