Schaeffler (SHA0) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw 1.0% FX-adjusted sales growth year-over-year, with revenue reaching €5.8 billion, led by E-Mobility and stable gross profit margin at 21.6%.

• EBIT margin before special items improved to 5.0% from 4.7% year-over-year, driven by operational gains and lower R&D costs.

• Free cash flow before M&A was negative at -€209 million, impacted by seasonal factors, restructuring outflows, and prior year advanced customer payments.

• Net income attributable to shareholders was €60 million, with EPS of €0.06, down from €0.09 in Q1 2025.

• Full-year 2026 outlook confirmed, targeting revenue of €22.5–24.5 billion and EBIT margin before special items of 3.5–5.5%.

Financial highlights

• Q1 2026 revenue: €5,764 million, up 1.0% at constant currency; gross profit margin stable at 21.6%.

• EBIT before special items: €285 million, EBIT margin 5.0% (up from 4.7% prior year).

• Free cash flow before M&A: -€209 million (prior year: -€155 million).

• Net financial debt: €5,143 million as of March 31, 2026; leverage ratio at 2.2x.

• CapEx for Q1: €237 million; capital employed at €12 billion.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenue €22.5–24.5 billion, EBIT margin 3.5–5.5%, free cash flow before M&A €100–300 million.

• E-Mobility sales guidance: €5.2–5.8 billion; EBIT margin -15% to -13%.

• Global light vehicle production expected to decline by 1.8% in 2026; industrial production to grow 2.5–3.0%.

• Q2 expected to be softer than Q1, with seasonality favoring stronger Q4.

• Management remains confident in achieving targets despite macroeconomic and geopolitical uncertainties.