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Vossloh Shares Plunge to 52-Week Low After Slashing Full-Year Guidance
Shares of Vossloh AG (VOSG) plunged on Tuesday, hitting a new 52-week low, after the rail infrastructure company significantly lowered its financial outlook for the full year 2026, citing a challenging economic environment and operational headwinds.
The stock fell by as much as 9.8% to trade at €56.20 following the announcement, a sharp decline from its 52-week high of €95.10.
Revised 2026 Forecast
Vossloh issued a profit warning, cutting its guidance for key financial metrics. The company attributed the revision to macroeconomic and geopolitical uncertainties, delayed project deliveries into 2027, and lower-than-expected call-offs from existing framework contracts.
- Revenue: The forecast was lowered to a range of €1,510–€1,610 million, down from the previous €1,560–€1,660 million.
- EBITDA: The outlook was cut to €195–€210 million, compared to the prior range of €215–€230 million. This new target fell short of analyst expectations.
- EBIT: Guidance was reduced to €100–€110 million from the previous €118.5–€131 million.
The company also noted that higher procurement and logistics costs could not be fully passed on to customers, further pressuring profitability.
AdMargin Erosion in First-Half Results
Preliminary results for the first half of 2026 underscored the company's profitability challenges. While revenues grew to €710.1 million from €582.6 million in the same period last year, earnings before interest and taxes (EBIT) declined sharply.
First-half EBIT fell to €32.4 million, a significant drop from the €44.9 million reported in the first half of the prior year. This divergence between revenue growth and declining EBIT points to meaningful margin erosion, a key concern for investors.
Market Context
The sell-off occurred amid a weaker session for German equities, with the DAX index declining 0.47%. Broader market sentiment was impacted by geopolitical news, including a U.S. announcement of a renewed naval blockade on Iranian shipping, which pushed crude oil prices to a one-month high and stoked fears of rising costs across global supply chains.
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