FS Group Freight Division Posts €96m Net Loss Despite 23% Improvement in 2025

FS Group's freight division posted a €96m net loss in 2025, despite improving its financial performance by 22.6% from the previous year's €124m deficit. The Italian state railway holding's freight operations include subsidiaries Mercitalia and TX Logistik.

The persistent losses underscore the structural challenges facing European rail freight operators amid volatile economic conditions and intensifying modal competition. FS Group's freight performance deterioration — with tonne-kilometres declining 3.8% to 22,031 million — highlights the broader pressures on continental freight railways. The division's ability to improve EBITDA by 41.1% to €105m positive while losing traffic volume suggests cost restructuring efforts are taking effect, though fundamental market conditions remain challenging.

Operational metrics declined across key performance indicators in 2025. Freight train-kilometres dropped 5.1% to 46 million, with domestic operations underperforming international services. Tonne-kilometres fell from 22,908 million in 2024 to 22,031 million, representing a 3.8% decrease. Foreign operations outperformed domestic freight, declining 3.3% compared to steeper domestic market contractions. TX Logistik contributed €48m in additional revenue, alongside improved performance from Mercitalia's shunting and terminal operations.

FS Group attributed the operational decline to macroeconomic headwinds including protectionist US trade policies under the new administration and ongoing geopolitical tensions. These factors compound existing challenges in European freight markets where rail competes against heavily subsidized road transport and faces infrastructure capacity constraints. The freight division's performance reflects broader industry struggles with margin compression and modal shift dynamics across European corridors.