Voestalpine lands €500M rail deals with Deutsche Bahn and SBB
Voestalpine has secured two major rail contracts worth nearly €500 million. The deals involve modernising infrastructure for Deutsche Bahn and Swiss Federal Railways (SBB). Both projects will see the company supply high-quality rails, signalling systems, and other key components.
The first agreement is a long-term partnership with Deutsche Bahn. Voestalpine will provide premium rails, switch components, and advanced signalling technology. This comes as part of Germany's broader rail upgrade programme, with Deutsche Bahn planning to invest over €23 billion in 2026 alone. Demand for rail and signalling tech in Germany has remained steady, growing by just 1-2% annually over the past five years due to budget cuts, digitalisation delays, and post-COVID supply chain issues.
The second contract is a 20-year framework deal with SBB to modernise Switzerland's rail network. Voestalpine will deliver axle-counting systems and other critical infrastructure. Swiss demand for rail technology has surged, rising by 5-7% yearly, driven by SBB's heavy investment in ETCS signalling, network upgrades, and long-distance rail expansion. Beyond these contracts, Voestalpine's logistics arm, CargoServ, already handles around 1.8 million tons of iron ore annually. The material is transported from the Erzberg mine to Linz using specialised container systems. Despite the company's strong contract wins, its share price currently sits around 19% below its 52-week high, trading at roughly €40.10.
The new deals will strengthen Voestalpine's position in the European rail market. Deutsche Bahn's upgrades and SBB's modernisation plans will rely on the company's expertise in rails and signalling. Both contracts are set to run for years, ensuring long-term revenue for the firm.
