|
The year 2024 is, as expected, less successful for VDL Groep than the previous year. Events that have a direct impact have all converged: the winding down at VDL Nedcar, headwinds caused by material shortages and consequently delayed bus deliveries, stagnating market developments, and increased costs (for wages, energy, interest, regulation). After a weak first half-year, the result showed recovery during the second half of 2024. Excluding the Car Assembly division, the annual turnover was the highest ever. For 2025, stable turnover is expected, with further improvement in the results.
The combined annual turnover in 2024 amounted to €4.281 billion, a decrease of over 30 percent compared to the turnover of record year 2023 (€6.354 billion). The net result has decreased by nearly 20 percent from €82 million in 2023 to €66 million. The order book in week 11 of 2025 (excluding the Auto Assembly division) stands at €1.932 billion, compared to €1.864 billion in week 11 of 2024, a 4 percent increase. The number of employees has remained unchanged since the beginning of 2025 and is approximately 13,800.
Chief Executive Officer Willem van der Leegte of VDL Groep: “In 2024, much attention was focused on major challenges which, as we predicted, have had a significant impact on our annual figures: the phase-out at VDL Nedcar in Born and the issues in supply chains caused by the COVID-19 pandemic, resulting in delayed deliveries of buses. Nevertheless, we continued to look for opportunities and made one of the largest acquisitions in our history with Van Hool. This has secured and created approximately 1,600 jobs in the bus industry and strengthened our position as a bus manufacturer. The integration of Van Hool into our organisation is progressing smoothly.”
The turnover in the Supply Division has increased from €2.733 billion in 2023 to €2.795 billion in 2024, a rise of over 2 percent. The activities in growth markets such as foodtech, infrastructure tech, and energy are performing well. In hightech and mobility, subsidiaries are experiencing delays due to the so-called cooling of the economy. The resources freed up by stagnation in the semiconductor industry are being used to accelerate growth in other markets, such as defense. Moreover, the first signs of recovery are visible worldwide in the semiconductor industry. Since the VDL subsidiaries in this division are based on three continents, they are able to supply customers locally worldwide, reducing the impact of geopolitical developments. The Supply Division is profitable. The order portfolio of Supply is stable and amounts to €920 million.
The VDL companies that are part of the End Products division have generated a turnover of 792 million euros over the past year, compared to 828 million euros in 2023. This decrease of over 4 percent can be explained by VDL Special Vehicles being incorporated into the Car Assembly division. The companies that are part of the End Products division are well positioned across the board. The End Products division is profitable. The order portfolio has remained stable at 481 million euros.
The turnover of the Bus division has increased by 67 percent in 2024, from €304 million in 2023 to €509 million. The main explanation for this is the rise in delivered public transport buses. The new generation VDL Citea, introduced into series production in 2023, has been delivered in the home markets of the Netherlands and Belgium, as well as in Germany, Denmark, Italy, Luxembourg, and Finland. As a result, VDL Bus & Coach’s fully electric public transport products are becoming more visible on European streets.
The Bus division is operating at a loss. To ensure sustainability and continuity, and to meet market demands, environmental standards, and legislation, substantial investments are being made in research & development (R&D), both for the public transport and touring coach programmes. With its own software architects, developers, and testers, VDL Bus & Coach focuses on ‘smart’ mobility issues, such as connectivity, energy management, and extending battery life.
In 2024, much attention was given to the acquisition of the failed Van Hool. Gaining access to the North American market, completing the product portfolio, and establishing a modern bus factory in North Macedonia strengthen VDL’s position as a bus manufacturer. It has not been easy to start deliveries and integrate such a large company after its bankruptcy. Nevertheless, the integration is progressing satisfactorily. Time is being taken to increasingly align VDL Bus & Coach and VDL Van Hool, evolving into one company with multiple product groups.
Although the bus market remains a challenging sector, further revenue growth is expected in 2025 within the public transport industry. The scaling up of production for the VDL Citea will lead to more deliveries. The order book for this electric city bus is fully booked for 2025. Besides public transport buses, 2025 will also see the launch of VDL’s new touring coach (VDL Futura). The first units of this new vehicle, which emphasizes low energy consumption, maximum utilization, and an optimal travel experience, are scheduled to be produced and delivered in 2025. The order book for Buses has increased over the past 12 months from €465 million in week 11 of 2024 to €590 million (a 27 percent increase).
The turnover of the Auto Assembly division has decreased: from 2.489 billion euros in 2023 to 185 million euros in 2024. This decline is due to the end of the production contract with BMW. The Auto Assembly division is not profitable. After this agreement concludes, the focus has shifted to giving the Born location a new future. Building on the knowledge and experience in engineering, industrialization, and production, efforts are being made to develop this site further. In addition to expanding the automotive activities of VDL Special Vehicles and VDL Mobility Innovation Centre in Born, the site is aimed at attracting additional high-quality manufacturing activities. VDL Mobility Innovation Centre assembles battery packs for vehicles. VDL Special Vehicles has expanded its order portfolio, including a multi-year contract for extensive inspections of tens of thousands of passenger cars annually. The year 2025 aims to further attract new business and transform the Born site into a sustainable, autonomous production location for the national and European high-end manufacturing industry, with a positive impact on employment and the (regional) economy.
The turnover of VDL Groep is expected to remain stable in 2025 compared to 2024. Despite the economy cooling somewhat, the order portfolio is maintaining a stable, high level of around €2 billion. The result will further recover as the one-time costs incurred for the phased withdrawal from VDL Nedcar have been accounted for, and deliveries of buses will continue to improve. The outlooks for the high-tech and mobility markets are somewhat less favorable in the short term. However, this will be balanced by the diversity of activities and VDL's solid positioning in various growth markets (including foodtech, infratech, energy, and defense).
Communications Director and spokesperson for VDL Groep
E: m.timmers@vdl.nl
Tel: +31 6 14767066
Are you a journalist interested in our work, or would you like to focus on VDL Groep for another reason?
Then please contact us.