Germany's SAF-Holland Q3 sales rise year on year, maintains 2026 outlook

Overview

• Germany trailer and truck parts supplier's Q3 sales rose 9.4% yr/yr

• Adjusted EBIT margin for Q3 improved to 9.7% from 9.1%

• Operating free cash flow for Q3 rose 50% yr/yr

Outlook

• Company confirms 2026 sales guidance of EUR 1.7 bln to EUR 1.85 bln

• SAF-Holland expects 2026 adjusted EBIT margin of 9% to 10%

• Company expects 2026 sales to be in upper third of forecast range

Result Drivers

• ORIGINAL EQUIPMENT DEMAND - Co said strong demand from trailer manufacturers in Europe and Asia-Pacific, especially India, and a recovery in the North American truck market drove Q3 sales growth

• COST CONTROL AND EFFICIENCY - Co attributed improved profitability to cost control measures and efficiency program, particularly in EMEA and APAC

• ONE-TIME APAC GAIN - Co said a one-time lease modification in APAC boosted Q3 earnings

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Saf-Holland Se is €22.00, about 7.3% above its November 4 closing price of €20.50

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 3 - Germany's Schaeffler 9-month sales flat on China hit, EBIT margin rises

• Nov 4 - Sweden's SinterCast Q3 revenue rises on market recovery

• Nov 3 - Italy's Iveco Group Q3 profit falls on quality costs, weak mix

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)