Improved sales and profitability observed during first six months, according to Stadler's report
In a strategic move to increase value creation and manage tariff costs, Stadler North America announced plans to expand its production facilities for the US market. The company will start vehicle bodyshell production in Salt Lake City, with production set to begin at the end of 2025.
The decision comes as the company continues to face impacts from the 2024 flooding disasters, including supply chain disruptions and delays. However, the 39 percent tariffs imposed by former US President Trump do not fully affect Stadler, as a larger portion of the remaining 20 to 30 percent of its components comes from Europe, with a lower tariff rate of 15 percent.
The move towards local production is expected to lead to higher value creation and lower tariff costs. Stadler North America currently achieves between 70 and 80 percent of value creation in the USA. The company's current analysis of supply chains is focused on further reducing the proportion of components subject to high tariffs.
The first half of 2025 has been a successful period for Stadler. The company won orders worth 1.7 billion francs and reported a revenue of 1.4 billion Swiss francs. The EBIT for the same period was 36.9 million francs, with an EBIT margin of 2.6 percent. This margin was 0.4 percentage points higher than the previous year, indicating initial positive results from the measures taken by the company.
Stadler's current order backlog stands at 29.4 billion francs, with the company working on 306 orders. The production of rail vehicles for the US market is predominantly done in the USA, in line with the Buy America Act, which requires Stadler to demonstrate that at least 70 percent of the value creation takes place in the USA when using US public funds.
The start of vehicle body production in Salt Lake City is a significant step towards meeting this requirement and supporting the growing demand for rail vehicles in the US market. The company is optimistic about the future and looks forward to continuing to serve its customers with high-quality products.
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