VDL Bus & Coach doubles turnover but remains loss-making. Group released results H1 2025

The first six months of 2025 closed in line with expectations for VDL Group, the group states while releasing the results for the first two quarters of the year. Turnover amounted to €2 billion, compared to €2.1 billion in the same period of 2024. Excluding the Car Assembly division, sales rose 2.5 per cent. However, “The order book has declined since the start of the year, primarily due to delayed bus deliveries”, VDL states

In 2024 VDL experienced an annual turnover of €4.281 billion, a fall of over 30% compared to the turnover of 2023 (€6.354 billion). The net result dropped by nearly 20% from €82 million in 2023 to €66 million. And it was 298 million euros in 2022! However, the bus division last year increased its turnover by 67% from €304 million in 2023 to €509 million. But it must be added that in 2023, the bus&coach division’s sales had dropped by 33 percent, from €454 million in 2022 to €304 million. 

Now, Willem van der Leegte, President & CEO of VDL Groep, says: “A year ago, we were facing a combination of major challenges that had a direct impact on our results, such as developments at VDL Nedcar and delayed bus deliveries. Now that the organisations are in place, or are in the process of being put in place, the road to recovery has begun. However, developments relating to geopolitical instability and cost pressures are having a direct impact on our global competitive position, particularly for products and services that are less complex and/or difficult to automate.”

Buses double but remain loss-making

Turnover in the Buses division reached €270 million in the first half of 2025, compared with €132 million in the same period last year — an increase of about 105 per cent. VDL explains that the growth is “primarily the result of significantly improved deliveries.” The integration of VDL Van Hool into the division is underway, though the company highlights “uncertainties caused by US import duties and the sharp decline in the dollar against the euro.”

Despite higher sales, the division remains loss-making. “In order to ensure the continuity of this division, the losses must be stopped,” VDL states. As part of this strategy, all public transport activities will be consolidated at the Roeselare plant in Belgium. The Valkenswaard facility will return to its traditional role as the group’s centre for coaches, as we anticipated a few days ago based on a media reporting by De Standaard. According to the newspaper, the move would entail 60 job losses in the Netherlands.

From 2026, Valkenswaard will produce the third generation of the VDL Futura. The official launch is scheduled for Busworld Brussels in October 2025. According to VDL, the Futura 3 is expected to deliver “a significant reduction in lifecycle costs, particularly through fuel savings of up to 15 per cent.”

Local newspaper ‘Eindhovens Dagblad‘ highlighted that “The introduction of the new generation of electric city buses did not go well. Problems arose with the development and production of some components of the new bus; they had to be redesigned. As a result, VDL is cautious about bidding for new orders”.

Still according to the local media, “VDL in North Macedonia is also struggling with increased American import tariffs. ‘Sixty per cent of Van Hool’s bus turnover goes to the US. We are facing an import duty of 15 per cent and an additional 50 per cent on steel. In addition, the dollar has fallen in value by 17 per cent.’ The result: ‘Van Hool’s customers are postponing deliveries or buying elsewhere.’”, as CEO Willem van der Leegte is quoted as saying.

What about the other VDL divisions…

The Subcontracting division recorded €1.303 billion in turnover, compared to €1.393 billion in H1 2024, a 6 per cent decrease. The decline was attributed to stagnation in the semiconductor sector. VDL notes that operating companies in this division remain positioned in growth markets such as hightech, mobility, energy, infratech and foodtech. The division is profitable.

The Finished Products division generated €444 million in revenue, compared with €432 million a year earlier. Profitability was confirmed across the board. In the period under review, Eindhoven-based Crux Agribotics was acquired and integrated as VDL Agrobotics. The company develops AI-enabled robotics for the sorting, classification and packaging of fruit and vegetables, aimed at reducing labour costs and food waste while optimising cultivation processes.

Born site: diversification continues

Following the end of Nedcar’s activities, the Born site is being developed along four strategic lines: sustainable mobility, battery packs and new energy systems, high-tech manufacturing, and defence. About 250 employees are active at the site.

In the first half of the year, the Ministry of Defence signed an initial lease for production space at Born. The aim is to strengthen national and European production capacity in the defence sector. VDL has been requested to apply its expertise in this field in response to current geopolitical developments.

The order book stood at €1.727 billion in week 35, down from the beginning of the year, primarily due to delays in bus deliveries, VDL says. Employment remained stable at over 14,000 people.

VDL expects turnover and earnings to remain stable in the second half of 2025. The group reiterated its call “on politicians, also after next month’s general election, to implement a stable, long-term industrial policy and work towards creating a favourable business climate. This will help strengthen the Netherlands’ and Europe’s competitive position in comparison to the rest of the world. After all, a positive business environment is the foundation of widespread prosperity”.