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
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Adjusted EBIT Margin | 4.50% | ||
9M Revenue | 17.5 bln euros | ||
9M Adj Free Cash Flow | -40 mln euros |
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
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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.)