Germany's SMT Scharf trims FY revenue, EBIT outlook on subdued customer investment
Overview
Germany mining equipment maker's preliminary 9M revenue and EBIT declined sharply yr/yr
Company cites weak investment in coal mining and tunnel logistics for revenue drop
Company cut 2026 revenue and EBIT guidance due to subdued customer investment
Outlook
SMT Scharf cuts 2026 revenue outlook to EUR 75 mln–85 mln from EUR 95 mln–115 mln
Company now expects 2026 EBIT between EUR -0.5 mln and EUR -1.5 mln, down from prior forecast
Company expects customer investment to remain subdued in Q4 2026
Result Drivers
LOWER INVESTMENT ACTIVITY - Co said weak investment in coal mining and tunnel logistics markets led to significant decline in new systems business
PROJECT TERMINATION - Unexpected termination of Middle East tunnel project resulted in EUR 0.6 mln non-recurring charges
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue | EUR 51.5 mln | ||
9M EBIT | EUR 0 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the mining support services & equipment peer group is "buy"
Wall Street's median 12-month price target for SMT Scharf AG is €6.50, about 15% above its October 27 closing price of €5.65
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 84 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.)