Swedish Railcare Group has reported a substantial increase in turnover for the first half of 2024, driven by strong performance in Sweden and steady transport operations across Scandinavia.
For the first six months of 2024, Railcare’s net sales grew by 20.9 percent to EUR 26.8 million. The operating profit for this period increased to EUR 2.57 million.
The growth in turnover was primarily fueled by high volumes in Railcare's contracting business in Sweden and transport operations throughout Scandinavia. A large ballast replacement project near Västerås contributed to the record volumes in Sweden. This project involved collaboration with multiple subcontractors, resulting in high turnover but yielding a slightly lower margin due to the nature of the subcontracting arrangements.
Despite these successes, the company faced challenges in the UK, where contracting volumes were notably low during the second quarter. Discussions with Network Rail are ongoing to assess future demand for Railcare's services in the UK.
In transport operations, Railcare continued to fulfil contract transports for track changes, with activities picking up towards the end of the second quarter. The transport of iron ore and iron ore concentrate for clients such as LKAB and Kaunis Iron proceeded as planned. Additionally, the completion of delayed TB locomotives for Infranord in the Långsele workshop marked another key operational milestone.
A noteworthy development during the period was Railcare’s acquisition of a 40 percent stake in the newly established locomotive rental company AC Finance AB. The acquisition positions Railcare to secure future contracts, particularly those related to emergency locomotive clearance tasks.
