Sogefi (SGF) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was €492.5 million, stable year-over-year (+0.4% at constant FX, -0.5% at current FX), with growth in Europe and India offsetting declines in China and South America.

• Adjusted EBIT rose 5.8% to €36.8 million (7.5% margin), net profit steady at €18.7 million.

• Free cash flow before IFRS 16 was €13.2 million, up from €10.9 million in H1 2025.

• Sale of the non-core Precision Springs unit for €21 million enterprise value is set to close by end of July 2026, with proceeds to strengthen the financial position.

Financial highlights

• Adjusted EBITDA increased to €73.8 million (15.0% margin), up from €70.9 million (14.3%) in H1 2025.

• Contribution margin improved to 30.2% from 29.5% year-over-year.

• Net debt (excluding IFRS 16) reduced to €8.3 million from €19.2 million at December 2025; including IFRS 16, net debt was €51.2 million at June 2026.

• Free cash flow after IFRS 16 was €7.5 million, down from €13.6 million in H1 2025 due to lease renewal.

• Net income margin stable at 3.8%.

Outlook and guidance

• Full-year 2026 revenue expected to decline low-single digit, with adjusted EBIT margin in line with 2025.

• Market visibility remains limited due to geopolitical and macroeconomic uncertainties, especially in the Middle East.

• S&P Global forecasts global car production to decline 2.1% in 2026, with Europe down 1.7%, NAFTA down 1.3%, China down 4.6%, India up 8.6%, and South America up 2.4%.