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Germany's SMT Scharf trims FY revenue, EBIT outlook on subdued customer investment

By Reuters News


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


Reuters Recommended Reads

  • Oct 28 - BASF will not overpay for Evonik, CEO says after another outlook hike

  • Oct 28 - Thyssenkrupp's tk accelis valued above $2 billion in German market debut

  • Oct 28 - Delivery Hero lifts annual guidance again as quick commerce drives growth


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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