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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

EUR 17.5 bln

9M Adjusted Free Cash Flow

-EUR 40 mln


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

  • Oct 13 - Europe's carmakers turn back time to rival Chinese EVs

  • Oct 12 - Xpeng executive says EV maker will expand European production ahead of local content rules


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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