Škoda Group

Škoda Group is a Czech manufacturer of rolling stock and urban transport vehicles, headquartered in Plzeň and owned by investment group PPF.

History and development

Škoda Group traces its origins to Škoda Works, the industrial conglomerate founded in Plzeň in 1859 by Emil Škoda. The company began producing locomotives in 1920, establishing Plzeň as a railway engineering centre. Following the Velvet Revolution, Škoda Works was privatised and broken up; Škoda Transportation was formally organised in 1995 as the transport engineering successor.

Ownership changed several times in the 2000s and early 2010s before PPF Group, a Czech investment firm, acquired 100% of shares in 2017. PPF injected capital and installed new management, initiating a structural reorganisation that continued through the early 2020s. In 2022, PPF sold the historical rights to the Škoda brand and winged-arrow logo to Škoda Auto, a Volkswagen Group subsidiary; the Plzeň-based company retains the right to use the name until 2029, after which a rebrand is expected.

The group has expanded through targeted acquisitions: Škoda Transtech (Finland, full ownership since 2018), Molinari Rail Austria (2023, restructured as Škoda Group Austria), The Signalling Company (Belgium, 93.6% stake, 2023), and Cegelec’s Czech electrical engineering assets (2024, now Škoda Electric Components).

Products and services

The core product range covers trams, electric multiple units (EMUs), battery EMUs, electric locomotives, metro trainsets, and trolleybuses, alongside traction motors and complete propulsion systems. The ForCity tram family — Classic, Smart, and Plus variants — is the group’s primary urban transit product and is deployed across Central Europe, Germany, and Finland. The InterPanter EMU serves regional rail markets.

Battery traction is an active development area. Škoda Group produced the first market-ready battery units for 3 kV DC traction networks, a specification common in Central and Eastern European rail systems. The group also manufactures components for third parties, including propulsion systems for trolleybuses and electric buses outside its own branded products.

Through TEMSA, a joint venture with Sabancı Holding, the group has indirect exposure to the global intercity and urban bus market across more than 70 countries. TEMSA is operationally distinct from the railway segment and generated revenues of EUR 480 million in 2024.

Role in the European context

Škoda Group occupies a mid-tier position in the European rolling stock market, competing with Alstom, Siemens Mobility, and Stadler for EMU and tram contracts. Its competitive base is strongest in Central and Eastern Europe, where it holds the reference position in the Czech and Slovak markets and has secured contracts in Bulgaria, the Baltics, Poland, and Finland. The Czech-Slovak domestic market accounts for approximately 35% of group revenue.

Germany became the group’s second most important tram market after 2020. Deliveries to Mannheim, Ludwigshafen, Heidelberg, Bonn, Frankfurt an der Oder, Cottbus, and Brandenburg an der Havel have established Škoda as a credible supplier in the German urban transit segment. A contract for Kassel is in production.

The 2023 acquisition of The Signalling Company broadens Škoda’s scope beyond rolling stock into trackside systems and opens the Belgian market. The TBL1+ automatic train protection system developed for the Belgian network received approval in 2024 and is ETCS-upgrade-ready.

Current programmes

Active rail programmes include 15 battery EMUs for Czech national operator České dráhy, commuter EMUs for Bulgaria with a 15-year full-service agreement, and a first contract with private operator RegioJet for electric train production. A contract signed in late 2024 covers 16 battery-electric multiple units (BEMUs) for Latvia, valued at EUR 160 million.

Metro production for Sofia is underway. Tram production is ongoing for Prague, Bergamo, and Kassel. The group demonstrated its Automatic Train Operation (ATO) system on Latvian commuter services in 2024, reporting energy savings of up to 15%. The Smart Depot ecosystem — including automated driverless tram operations — was demonstrated at Tampere the same year.

Financial position

In 2024, Škoda Group recorded revenues of EUR 1.1 billion and EBITDA of EUR 62 million, up 185% year-on-year. New orders reached EUR 1.7 billion, a 74% increase, bringing the total order backlog above EUR 3.5 billion. The group invested EUR 87 million in research and development and EUR 66 million in capital expenditure during the year. The workforce stood at approximately 10,000, including TEMSA employees.

The 2024 results followed a period of operational stabilisation in 2022–23 characterised by supply chain disruption and delivery delays. Management has indicated that EBITDA for 2025 is expected to roughly double the 2024 figure, based on unaudited results, and that the group intends to repay shareholder injections made during the restructuring period.

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