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

Overview

• Germany motion technology firm's nine-month revenue nearly flat yr/yr at constant currency

• Adjusted EBIT margin before special items improved to 4.5% from 4.2%

• Company confirmed full-year 2026 guidance despite challenging market environment

Outlook

• Schaeffler confirms 2026 full-year revenue guidance of EUR 22.5 bln to EUR 24.5 bln

• Company maintains 2026 EBIT margin guidance at 3.5% to 5.5%, before special items

• Schaeffler expects 2026 free cash flow before M&A of EUR 100 mln to EUR 300 mln

Result Drivers

• DIVISIONAL PERFORMANCE - Mixed earnings trends across four divisions, with diversified structure offsetting declines in individual sectors

• E-MOBILITY CHALLENGES - E-Mobility division faced one-off special charges (recorded in Q3) due to weak China business of European manufacturers, leading to impairments and provisions

• OPERATIONAL IMPROVEMENTS - Co said improved operating performance and structural cost improvements helped profitability despite slightly lower revenue, per CFO Christophe Hannequin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 1 "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 Schaeffler AG is €8.50, about 42.4% above its November 2 closing price of €5.97

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 2 - Forvia quarterly revenue broadly stable despite auto market weakness

• Nov 2 - Germany's Amadeus Fire nine-month revenue falls on weakness in Personnel Services segment

• Nov 3 - Norma Group Q3 sales rise, profitability improves on new orders

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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.)