Germany's Schaeffler prelim 9M revenue dips amid declining project volumes in China

Overview

• German machine and car parts maker's preliminary 9M revenue dipped slightly yr/yr to EUR 17.5 bln

• Company took EUR 240 mln in E-Mobility special charges, mainly for asset impairments and provisions

• Order book in humanoid robotics business rose to about EUR 400 mln in Q3

Outlook

• Schaeffler confirms FY 2026 guidance and mid-term targets for 2028

• Company expects moderate improvement in E-Mobility earnings performance in coming years after one-off charges

• Schaeffler aims to achieve operational break-even in E-Mobility division

Result Drivers

• E-MOBILITY IMPAIRMENTS - Co recognized EUR 240 mln in one-off asset impairments and provisions in E-Mobility division due to declining project volumes, mainly in China

• ROBOTICS ORDER GROWTH - Order book in humanoid robotics business increased to about EUR 400 mln in Q3 after acquiring two new customers in Greater China

• PORTFOLIO STREAMLINING - Co streamlined portfolio in E-Mobility division, especially in thermal management systems, to reduce overcapacity and mitigate balance sheet risk

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 €8.30, about 39.5% above its October 12 closing price of €5.95

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 12 - Volkswagen deliveries post steepest drop in more than four years as China weakness deepens

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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.)