“2025 was partly a year of stabilisation, but for the first time it was clearly a year of growth. The preceding period focused on strengthening customer confidence, streamlining production and returning to disciplined project management. Last year was the first in which these measures were fully reflected in the Group’s results and, at the same time, the second most successful in terms of business performance since 2019,” comments Petr Novotný, CEO of Škoda Group.

 

Railway production played a significant role in the growth in orders, particularly in the area of battery-powered and hybrid trains, which respond to current market needs and the gradual electrification of railway lines. Battery-powered trains were among the most significant orders of 2025 and confirmed the Group’s technological readiness to offer solutions for modern and sustainable regional transport, not only in the Czech Republic but also abroad. “We see the interest in battery-powered trains as a clear signal from the market. This is a technology that enables a rapid increase in the share of zero-emission transport, even where the infrastructure is not yet fully in place. We see significant potential in it, and its further development will be one of our key priorities in the coming years,” adds Petr Novotný.

 

“We are very pleased with the results achieved, which reflect disciplined financial management, operational efficiency and the strong performance of our business. We are entering the next period with optimism and a clear focus on sustainable growth,” comments Jaroslav Zoch, CFO and member of the Board of Directors of Škoda Group.

 

Trains

At the end of 2025, Škoda Group secured a contract to supply up to 16 battery-powered trains to Latvia, worth approximately € 165 million, and also won a contract to supply up to 36 battery-powered trains to Slovakia, worth € 330 million. Alongside conventional battery-powered trains, other segments of railway manufacturing also performed well in 2025, including hybrid battery-diesel trains for the operator RegioJet. In total, the Group now has orders for more than 100 battery-powered trains. It also secured a contract to manufacture electric trains with a top speed of up to 200 km/h, which Škoda Group will supply to the operator Arriva for service on the route between Prague and western Bohemia. In 2025, Škoda Group secured a contract for urban commuter for the Swedish operator Saltsjobanan, comprising up to 31 vehicles worth more than € 230 million.

 

Trams

In terms of the portfolio, the tram business also strengthened significantly last year, both on the domestic Czech market and, in particular, on Western European markets. In 2025, the first 20 trams were successfully delivered to Prague, just 24 months after the contract was signed. The 52T tram for Prague is the most modern tram on the market, and its exceptional nature is further demonstrated by the Red Dot Design Award. On the German market, Škoda Group has so far sold 300 trams to 11 cities, winning further tenders thanks to its proprietary technical solutions and its emphasis on quality and passenger comfort.  “Trams are one of the pillars of our growth today. Thanks to our modular approach and in-house technologies, we are able to offer solutions that stand up to the most demanding European tenders,” says Petr Novotný.

 

Trolleybus exports are at a high level

Aside from rail transport, Škoda Group has also been successful with trolleybuses, specifically in Germany, where it will supply up to 61 trolleybuses to Esslingen. A further 70 Czech-made trolleybuses will be delivered to Tallinn in Estonia and up to 75 to Sofia in Bulgaria. Škoda Group has also secured contracts in the Czech Republic, specifically in Teplice, Jihlava, Chomutov and Ústí nad Labem. However, in 2025, export orders dominated, totalling more than 200 vehicles.

 

Service

Last year, Škoda Group also strengthened its position in the area of service and long-term contracts for the modernisation, repair and maintenance of rail vehicles. In 2025 the revenues in service reached € 297 million. These will be carried out primarily in Šumperk, where Škoda Group has its largest service facility for rail vehicles, and at the Martinov plant in Ostrava. These contracts provide long-term, predictable revenue and complement the Group’s production programme. In addition, Škoda Group has service facilities in regions where it is actively involved, such as the Baltic states, the Balkans and Germany.

 

Digital & Technology

Škoda Group regularly invests over € 9 million a year in CAPEX in Digital division. In 2025, Škoda Group’s Belgian affiliate, The Signalling Company, also succeeded in certifying its own railway signalling system – ETCS. This is a revolutionary product that propels Škoda Group to the forefront of the global market in this segment. Furthermore, compared to competing solutions, the system is smaller, lighter and easier to install, so the Group sees great potential here not only for new vehicles but also for retrofitting older ones. ETCS is a standardised European signalling system that will soon be mandatory for all trains across Europe.

 

In addition, Škoda Group is, of course, continuing to strengthen its position in digital technologies, where the most popular are anti-collision system that prevents tram accidents, and an advanced automatic train operation system (ATO) that reduces electricity consumption by up to 15 per cent. It is also intensively developing its own digital products in the fields of telematics and cyber security.

 

Components

In the components sector, Škoda Group strengthened its position by securing new orders worth € 367 million. Investments in research and development of the components division amounted to € 7 million. At the same time, Škoda Group received its first order for its own battery system for rail vehicles and commenced development of a battery pack designed for battery electric multiple trains (BEMUs). In line with its long-term strategy, it also continued its expansion into non-European markets by establishing a joint venture with the Indian company TATA, focused on the production of components for rail vehicles, primarily for the rapidly growing Indian market.

 

Investments in expanding production

Following last year’s wave of production capacity expansion, Škoda Group has reached a stage where it can increase production without the need for further major investment. “In recent years, we have invested a total of € 107 million in expanding production. Thanks to this, we have been able to increase production capacity by up to 100 railway carriages per year,” explains Petr Novotný.

 

Outlook for 2026 

According to the Group’s management, 2026 will be a year of further growth and strengthening of its technological position. The focus will remain on rail vehicles, particularly electric, battery-powered and hybrid trains for regional and commuter transport. Škoda Group will continue to build on its strong position in the domestic Czech-Slovak market, which it regards as a key source of references and innovation, whilst systematically strengthening exports to Central Europe – particularly Germany and Poland – and to other European regions, such as Romania, Serbia and France. In addition to Europe, the group is also focusing on selected non-European markets, primarily Central Asia, the United States and India, where it is developing long-term cooperation with local partners. “Our aim is sustainable growth based on technical expertise, the ability to deliver complex projects and long-term customer trust,” concludes Petr Novotný.