Recovery for VDL Groep during the course of 2024 after difficult first half year
In line with expectations, 2024 was less successful for VDL Groep than the previous year. Events which had an immediate impact converged: the winding down at VDL Nedcar, headwinds from material shortages and subsequently delayed deliveries of buses, stagnating market developments and increased costs (for wages, energy, interest, legislation). After a poor first six months, operating results showed signs of recovery during the second half of 2024. Excluding the Car Assembly division, annual turnover is the highest ever. Sales are expected to remain the same in 2025, with further recovery of the operating results.
Our combined annual turnover amounted to €4.281 billion in 2024, a fall of over 30% compared to the turnover of the record year 2023 (€6.354 billion). The net result dropped by nearly 20% from €82 million in 2023 to €66 million. In week 11 of 2025, the order portfolio (excluding the Car Assembly division) totalled €1.932 billion, compared with €1.864 billion in week 11 of 2024, a rise of 4%. Since the start of 2025, the number of employees has remained the same and totals 13,800.
“A lot of attention for major challenges”
VDL Groep President and CEO Willem van der Leegte: "A lot of attention in 2024 went to major challenges which, as we predicted, will have a substantial impact on our annual figures: the winding down at VDL Nedcar in Born and, as a result of the Covid pandemic, issues in supply chains and subsequently delayed deliveries of buses. Nevertheless, we continued to look for opportunities and, with Van Hool, we made one of the biggest acquisitions in our history. This has retained around 1,600 jobs for the bus industry and further strengthens our position as a bus manufacturer. The integration of Van Hool into our organisation is going well."
Subcontracting
The turnover of the Subcontracting division increased from €2.733 billion in 2023 to €2.795 billion in 2024, a rise of over 2%. Operations in growth markets, such as foodtech, infratech and energy, are doing well. In hightech and mobility, operating companies are facing delays due to the so-called cooling of the economy. We are using the resources released by stagnation in the semiconductor industry to create acceleration in other growth markets, such as defence. In fact, the first signs of recovery are visible worldwide in the semiconductor industry. Because the VDL operating companies in this division are based in three continents, they can supply our clients worldwide, ensuring that we are less affected by geopolitical developments. The Subcontracting division is profitable. The Subcontracting order portfolio is stable at €920 million.
Finished Products
The VDL companies that make up the Finished Products division jointly generated €792 million in revenue over the past year, compared to €828 million in 2023. This fall of over 4% can be explained by the subsumption of VDL Special Vehicles in the Car Assembly division. The companies that make up the Finished Goods division are well positioned across the board. The Finished Products division is profitable. The turnover amounted to €481 million.
Buses & Coaches
In 2024, the turnover of the Buses & Coaches division increased by 67% from €304 million in 2023 to €509 million. The main reason for this is the increase in public transport buses delivered. The new generation VDL Citea, which entered series production in 2023, has been delivered in the home markets of the Netherlands and Belgium, and in Germany, Denmark, Italy, Luxembourg and Finland. This means that VDL Bus & Coach's all-electric public transport product is increasingly visible on the European streetscape.
The Bus & Coach division is loss-making. To ensure sustainability and continuity, and meet market demand, environmental requirements and laws and regulations, substantial investments are being made in research & development (R&D), for both the public transport and 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, a lot of attention was devoted to the acquisition of the bankrupt Van Hool. With access to the North American market, completion of the product portfolio and a modern bus factory in Macedonia, VDL is strengthening its position as a bus manufacturer with this acquisition. Getting deliveries up and running at a bankrupt company of this size and integrating the company into the VDL organisation has been no mean feat. Nevertheless, that integration is proceeding satisfactorily. Time is being taken for VDL Bus & Coach and VDL Van Hool to grow more and more towards each other, into one company with multiple product groups.
Turnover for the Public Transport sector is expected to increase further in 2025. The further upscaling of production for the VDL Citea will lead to a higher number of deliveries. The order portfolio for this electric city bus is filled for 2025. Besides public transport buses, 2025 is also the year when VDL's new coach (VDL Futura) will be introduced. The first numbers of this new vehicle, whose focus includes low energy consumption, maximum deployment and an optimal travel experience, will be produced and delivered in 2025. The order portfolio of Buses & Coaches expanded over the past 12-month period from €465 million in week 11 of 2024 to €590 million (rise of 27%).
Car Assembly
The turnover of the Car Assembly division fell from €2.489 billion in 2023 to €185 million in 2024. This decrease can be explained by the end of the production contract with BMW. The Car Assembly division is loss-making. Since the end of this agreement, the focus has shifted to giving the Born site a new future. This builds on the knowledge and experience of engineering, industrialisation and manufacturing. Besides expanding the automotive activities of VDL Special Vehicles and VDL Mobility Innovation Centre in Born, the establishment of additional high-quality manufacturing activities is being pursued at the site. VDL Mobility Innovation Centre assembles battery packs for vehicles. VDL Special Vehicles has expanded its order portfolio, including a multi-year contract for comprehensive inspections on tens of thousands of passenger vehicles every year. The year 2025 is all about further attracting new business activities and transforming the Born site into a sustainable, autonomous production location for the national and European high-quality manufacturing industry with a positive impact on employment and (regional) economy.
Prospects
VDL Groep's turnover is expected to remain the same in 2025 compared to 2024. Despite the slight cooling of the economy, the order portfolio is at a stable, high level of around €2 billion. The result will recover further now that the one-off costs involved in winding down VDL Nedcar have been incurred, and bus deliveries will continue to improve. The outlook for the hightech and mobility markets is slightly poorer in the short term. This will be offset by the diversity of activities, and because VDL is well positioned in several growth markets (including foodtech, infratech, energy and defence).