hGears (HGEA) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance was in line with expectations and guidance, supported by disciplined execution, cost measures, and structural changes amid challenging market and geopolitical uncertainties.

• Efficiency, liquidity, and cash preservation remained key priorities, with sufficient headroom maintained and cash and cash equivalents at EUR 7.6 million.

• The e-Bike segment continued to be impacted by industry destocking and production phasing, while e-Mobility showed resilience and growth, and e-Tools declined moderately but remained stable.

• Structural and efficiency measures helped cushion low operating leverage, adverse product mix, and FX effects.

Financial highlights

• Group sales declined to EUR 23.3 million in Q1 2026 from EUR 25.1 million in Q1 2025, a 6.9% decrease year-over-year.

• Adjusted gross profit was EUR 10.5 million, with a margin of 44.8%, down from 47.0% in Q1 2025.

• Adjusted EBITDA was EUR -0.2 million, compared to EUR 0.7 million in Q1 2025.

• Free cash flow improved by EUR 1 million year-over-year, reaching EUR -1.2 million.

• Personnel expenses fell by EUR 0.8 million (9.1% year-over-year), outpacing the sales decline.

Outlook and guidance

• Full-year 2026 guidance confirmed: group revenues expected between EUR 80 million and EUR 90 million.

• Adjusted EBITDA forecasted between EUR -3 million and EUR 0; free cash flow expected between EUR -5 million and EUR -2 million.