Wacker Neuson (WAC) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue was EUR 2,218.8 million, nearly flat year-over-year, with Q4 revenue up 15.8% YoY and operational recovery after a weak Q1.

• EBIT reached EUR 132.4 million, up 7.6% year-over-year, with a 6.0% margin (up 0.5pp), despite one-time Q4 effects.

• Free cash flow increased to EUR 201.6 million, supported by disciplined inventory management and reduced net working capital.

• Net debt was reduced by over 40% to EUR 185 million, with net financial debt/EBITDA at 0.6.

• A dividend of EUR 0.70 per share is proposed, representing a 61% payout ratio and a 2.9% yield.

Financial highlights

• Book-to-bill ratio remained above one throughout 2025, indicating stable order intake.

• EBIT margin improved to 6.0% (adjusted EBIT margin 6.5%), with underlying quality better excluding one-time Q4 effects.

• Net working capital ratio improved to 29.2%, below the 30% strategic target.

• Operating and free cash flow both improved, with Q4 contributing EUR 86 million.

• Equity ratio stood at 62%, highlighting balance sheet strength.

Outlook and guidance

• 2026 revenue expected between EUR 2.2 billion and EUR 2.4 billion, with EBIT margin guidance of 6.5%-7.5%.

• Net working capital ratio to remain below 30%; planned investments of EUR 70-90 million.

• Strategy 2030 EBIT margin target of over 11% reaffirmed, with profitability prioritized over growth in the near term.

• Order intake and backlog above previous year; EU construction recovery expected, but US tariff policy and geopolitical risks remain.