Vossloh AG Secures Multi‑Year Switch Supply Deal with Italian Rail Operator

Vossloh AG (Xetra: VOS) announced that it has signed a multi‑year framework agreement with Rete Ferroviaria Italiana (RFI) for the supply of railway switches. The contract, announced on 5 November 2025, is valued at more than €100 million and covers the delivery of switches for the existing Italian rail network.

The agreement expands Vossloh’s presence in the European rail‑equipment market and adds a significant, long‑term revenue stream to the company’s portfolio. Vossloh is a German industrial firm that designs and manufactures railway equipment such as rail fasteners, switch systems, diesel locomotives, and locomotive components, and it also provides rail construction, maintenance, and safety‑related services.

Market Reaction

Vossloh’s share price closed at €72.20 on 3 November 2025, within the company’s 52‑week trading range of €40.35 to €95.1. The firm’s market capitalization was approximately €1.43 billion. The price‑earnings ratio stood at 24.85, reflecting investors’ valuation of the company’s earnings potential.

The announcement came as the broader German market, represented by the SDAX, experienced a decline in late‑day trading. On 4 November, the SDAX ended 1.68 % lower at 16 266.09 points, while on 5 November it fell 1.32 % at 16 325.16 points at market open. These movements highlight a cautious sentiment among investors in Frankfurt during the week.

Strategic Significance

The RFI contract is a key development for Vossloh, as it:

  1. Diversifies Revenue – The multi‑year nature of the agreement provides a predictable cash flow.
  2. Expands Geographic Reach – It strengthens the company’s footprint in Italy, complementing its existing global operations.
  3. Reinforces Core Competencies – The supply of switches aligns with Vossloh’s established product expertise in railway signalling and control equipment.

Outlook

Analysts from Quirin Privatbank have continued to issue “Buy” recommendations for Vossloh as of 3 November 2025, citing the company’s solid fundamentals and the recent contract as positive catalysts. The firm’s focus on rail infrastructure and its role within the European railway supply chain position it favorably for future growth, especially as rail networks undergo modernization and expansion across the continent.