Germany's Grammer Q3 EBIT falls on Iran conflict; cuts full-year forecast

Overview

• Germany automotive supplier's preliminary Q3 revenue rose yr/yr, but EBIT declined

• Company cites Iran conflict, tariffs, and Americas launch costs for EBIT decline

• Company cut full-yr EBIT forecast but maintained revenue outlook

Outlook

• Grammer cuts 2026 operating EBIT forecast to around EUR 70 mln from about EUR 80 mln

• Grammer maintains 2026 revenue outlook at about EUR 1.9 bln

• Company sees Iran conflict and U.S./Mexican tariffs weighing on performance

Result Drivers

• GEOPOLITICAL AND TARIFF IMPACTS - Co attributed lower Q3 earnings to Iran conflict and U.S./Mexican special tariffs

• AMERICAS LAUNCH COSTS - Higher-than-expected launching costs for new projects in Americas region reduced profitability

• RESTRUCTURING EXPENSES - Plant restructuring expenses partially offset by provision reversals affected EBIT

Company press release:

Key Details

Analyst Coverage

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads

• Oct 13 - European automakers urge support as VW warns of 'enormous pressure'

• Oct 13 - Europe's mass-market carmakers under 'enormous pressure', Volkswagen CEO says

• Oct 13 - Germany's Schaeffler prelim 9M revenue dips amid declining project volumes in China

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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.)