TAS-Dniprovagonmash LLC (DVM, Kamianske, Dnipro region), controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-March 2025 with a loss of UAH 16.87 million, while in January-March 2024, net profit was UAH 7.17 million.
According to the company’s interim reporting, published on Wednesday in the NSSMC’s information disclosure system, net income decreased by almost a quarter to UAH 285.5 million.
The company reduced its gross profit by 4.6 times to UAH 7.49 million, having received UAH 14.5 million in losses from operating activities, compared to UAH 9.31 million in profit for the first quarter of 2024.
According to TAS Dneprovagonmash, in January-March it produced 181 railcars and other products (in 2024, 177 railcars in the same period), with average realized prices of railcars amounting to UAH 2,569.4 thousand. No products were exported.
The main customers are TAS Poltavagon, Agroprogress PE, and Slobozhanshchyna Agro.
“In the first quarter of 2025, the freight base of rail logistics in Ukraine tended to decline, with the total volume of rail transportation decreasing compared to the same period in 2024, which in turn adversely affected the demand for newly built freight cars,” the report says.
Among the reasons for the decline in transportation volumes, the company cites, in particular, the introduction by Ukrzaliznytsia of temporary conventions for the transportation of goods to Hungary and some stations in Poland; an increase in freight tariffs; the abolition of a 30% discount on rail transportation of grain from the frontline areas; a decrease in the number of grain crops for export; and a cyberattack on Ukrzaliznytsia’s information and telecommunications systems in March 2025.
In addition, massive rocket attacks in January-March significantly affected the energy sector, transportation and port infrastructure, which led to a decrease in demand for railcar products.
The share of TAS Dneprovagonmash in the total production of freight cars in Ukraine in January-March 2025 amounted to 25.8%. The main competitors include Kryukiv Carriage Works, Karpaty DMZ, and Ukrzaliznytsia plants.
The value of contracts concluded but not yet fulfilled as of the end of the first quarter of 2025 was UAH 1 billion 161 million (excluding VAT). The expected profit from the execution of these contracts is UAH 6.8 million.
At the beginning of April this year, the company employed 744 people.
The plant notes that the most important strategic goals of the current year are to launch parallel production of railcars, U25 bogies, components and services in the EU market, integrate the Austrian sales department, and develop new and unified products (development of a 3D model and design of a cement hopper car, development of a 3D model of a 105 m3 grain carrier – an analogue of the Duro Dakovic car).
As reported earlier, TAS Dneprovagonmash, which has the capacity to produce 9,000 railcars per year, increased sales of freight cars by 63.7% in 2024 compared to 2023, up to 606 units, and production by 59.2%, up to 602 units.
Last year, the plant increased its net profit by 31.6% to UAH 62.3 million and net income by 61.8% to UAH 1 billion 743.7 million.
