photo: RAILTARGET/Stadler Annual Report 2024 event, Switzerland
The past year has been a rollercoaster ride for Stadler, with major business successes overshadowed by three environmental disasters that disrupted production and delayed deliveries. Despite these challenges, the Swiss rail manufacturer has secured significant orders, strengthened its position in sustainable rail technology, and expects strong growth in the coming years.
Environmental Disasters Delay Deliveries and Impact Financials
Stadler’s 2024 financial year was marked by severe flooding in Valais (Switzerland), Dürnrohr (Austria), and Valencia (Spain), which significantly impacted production and supply chains. The damage resulted in EUR 365.2 million in postponed sales, shifting revenue recognition to 2025 and 2026.
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In Valais, flooding devastated a key supplier’s plant, destroying 850 tons of Stadler’s aluminum profiles. The company swiftly relocated production to a sister plant in Germany, with full operations restored by early 2025. Meanwhile, according to PublicNow, a dam burst in Dürnrohr led to the flooding of a commissioning center for ÖBB’s KISS double-decker trains, destroying at least one new vehicle.
The worst-hit was Valencia, where a historic environmental disaster claimed over 220 lives, according to Reuters. Though all 3,200 Stadler employees remained unharmed, critical supply chains suffered. Several external warehouses storing diesel engines and bogies were flooded, and 40 suppliers saw their production halted. The crisis forced 200,000 production hours to be rescheduled, leading to delays of one to five months for 50 orders. However, Stadler Valencia launched an aggressive catch-up program to minimize disruptions.
Financial Performance: A Resilient Recovery
Despite these setbacks, Stadler remains financially solid. According to the report, the company closed 2024 with EUR 3.4 billion in sales, about 10% lower than the previous year due to delayed deliveries. The EBIT margin dropped to 3.1%, down from 5.1% in 2023, largely due to disaster-related costs. However, CEO Markus Bernsteiner remains optimistic: "Stadler continues to operate successfully and is winning many orders. Our order intake has developed extremely well in 2024." And indeed, new orders worth EUR 6.7 billion boosted Stadler’s backlog to a record EUR 30.5 billion. Free cash flow also recovered to EUR 146.2 million, after a negative EUR 401.3 million in H1 2024.
Major Market Wins Across the Globe
Stadler’s global presence continued to expand in 2024, securing key contracts across multiple regions. The company made a breakthrough in Saudi Arabia, winning an order for 10 next-generation intercity trains, marking its entry into the market. In Poland, Koleje Mazowieckie placed an order for up to 50 FLIRT trains, later expanding the contract to include an additional 15 vehicles, as previously reported by RAILTARGET.
Despite facing delays due to legal appeals and the pandemic, Stadler successfully delivered Berlin’s subway trains, reinforcing its strong position in Germany. Meanwhile, the company achieved a significant milestone in the United States, securing its first light rail order with a contract for up to 80 CITYLINK streetcars for Salt Lake City. In France, the operator of the Paris Metro placed an order for 12 battery-electric locomotives, intended for maintenance and network expansion.
Overall, Stadler has solidified itself as a market leader in alternative drive technologies, particularly battery and hydrogen trains. In 2024, 50% of all rail vehicles with alternative drive systems in Europe were produced by Stadler. The company has already sold 280 units, many of which are in service. The company’s FLIRT trains remain a global success, with 2,750 units sold since their debut 20 years ago.
Nevertheless, while the company’s global operations thrived, Stadler Deutschland faced significant headwinds. According to the company, the lingering effects of supply chain disruptions, inflation, and rising energy prices put pressure on production costs. In response, a structural and efficiency program was launched, with negotiations ongoing with worker unions to ensure long-term competitiveness.
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Board Rejuvenation and Future Outlook
Stadler’s Board of Directors saw a generational shift, with two new members, Danijela Karelse and Niko Warbanoff, replacing long-serving leaders Barbara Egger-Jenzer and Kurt Rüegg. Chairman Peter Spuhler commented, saying, "They have made important contributions to Stadler’s success. I wish them joy and success for the future."
Looking ahead, production output is expected to surge, with sales projected to exceed EUR 5.2 billion by 2026. If all goes as planned, EBIT margins could rise to 6-8% in the medium to long term.
Sources: Stadler; RAILTARGET; Reuters; PublicNow