PJSC Kryukovsky Carriage Works (KVSZ, Poltava region) ended January-June 2025 with a loss of UAH 11.7 million, down 6.7% year-on-year.
According to the company’s interim unconsolidated financial statements published in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), net income increased by 24.1% to UAH 1 billion 772.7 million.
During the reporting period, the plant received UAH 34.4 million in losses from operating activities, down 2.4 times, while gross profit quadrupled to UAH 96.3 million.
KVSZ also released its interim reporting for the first quarter of this year, according to which it ended the quarter with a net profit of UAH 3.3 million, down 7.6% year-on-year, with net income up 73% to UAH 1 billion 131 million.
Thus, in the second quarter of this year, its loss decreased by 7% compared to April-June 2014 to almost UAH 15 million, while net income decreased by 17% to UAH 642.2 million.
According to the company’s consolidated financial statements, in the first half of the year, the consolidated loss amounted to UAH 9.8 million, which is 9% less than in the same period last year, and consolidated net income increased by a quarter to UAH 1 billion 785 million.
The company’s reports indicate that in the first quarter of 2025, KVSZ sold 121 freight cars (a total of 474 freight cars were delivered to the market by Ukrainian car builders), while in the second quarter there were no deliveries of freight cars.
“Taking into account the significant surplus of freight cars on the Ukrainian market in the second quarter of 2025, low rental rates, and insufficient cargo base for the existing fleet of cars, PJSC KVSZ did not sell freight cars,” the report says.
At the same time, according to the plant, KVSZ’s competitors sold 131 railcars under previously concluded contracts (including 61 railcars sold to TAS Dneprovagonmash and 70 to DMZ Karpaty).
“Under these agreements, TAS Dneprovagonmash and Karpaty DMZ issued certificates of force majeure with an extension of the delivery time for cars to the third quarter of 2025,” KVSZ reports.
KVSZ notes that the Ukrainian freight car market experienced a steady and significant surplus in the second quarter.
“And the export market is experiencing a decrease in demand and a slowdown in development due to the lack of fleet renewal programs and the write-off of worn-out rolling stock,” the report says.
At the same time, KVSZ reminds that in the first half of the year it continued to supply passenger cars to Ukrzaliznytsia under a contract for 66 cars signed in 2023, including 17 cars in the first quarter and 16 cars in the second quarter.
The share of exports in the second quarter amounted to 0.6% of sales, which included railway transport spare parts for Latvia.
“Given the high development of the railway rolling stock industry in the EU, competition there is considered extremely high. Traditional European manufacturers have been joined by new ones from Turkey and Bulgaria, which offer low prices for their products due to a significant share of in-house production of components (primarily bogies), proximity to rolled metal suppliers, and lower operating costs (compared to Western Europe),” the company said in its report.
KVSZ produces passenger and freight railcars, regional diesel trains, high-speed interregional locomotive trains, spare parts and bogies for freight cars.
In 2024, the plant sold 1,096 thousand freight cars, which is almost 10% more than in pre-war 2021. The first 15 passenger railcars were also delivered to Ukrzaliznytsia under contracts for 66 units. Net profit amounted to UAH 81.08 million, compared to a loss of UAH 143.76 million in 2023.
