Switzerland's EDAG 2025 revenue falls on automotive weakness

EDAG Engineering AG

26/03/2026 06:15

Overview

Switzerland engineering services provider's 2025 revenue declined 13% but slightly beat analyst expectations

Adjusted EBIT for 2025 was negative, reflecting restructuring costs and underutilization

Company accelerated diversification and restructuring, expects cost savings and positive EBIT in 2026

Outlook

EDAG expects 2026 revenue to develop within a corridor of around +/- 5%

Company expects a return to positive adjusted EBIT of up to around 3% in 2026

EDAG targets mid-term adjusted EBIT margin of 6-8% within five years

Result Drivers

AUTOMOTIVE WEAKNESS - Co said persistently challenging market environment in automotive industry and customer reluctance to invest led to lower revenue and order intake

UNDERUTILIZATION - Co said lower revenue and underutilization in mobility business drove decline in earnings in Vehicle Engineering and Electrics/Electronics segments

IMPAIRMENT CHARGE - Co said adjusted EBIT in Production Solutions segment was significantly impacted by EUR 15 m. impairment on a major project

Company press release: ID:nEQ3fB3GGa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
EUR 714 mln
EUR 710.38 mln (4 Analysts)
FY Adjusted EBIT
-EUR 12.90 mln
FY Adjusted EBIT Margin
-1.80%
FY Orders
EUR 688 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

Wall Street's median 12-month price target for EDAG Engineering Group AG is €6.75, about 69.2% above its March 25 closing price of €3.99

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 21 three months ago

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.)