Germany's PWO H1 profit drops on adjustments to Canada customer planning
Germany's PWO H1 profit drops on adjustments to Canada customer planning
Overview
Germany mobility supplier's H1 revenue fell yr/yr, impacted by lower tool sales and currency effects
Net income for H1 dropped, reflecting absence of prior one-off gain and higher start-up costs
Free cash flow rose to EUR 3.3 mln from EUR 0.8 mln a year earlier
Outlook
PWO confirms 2026 revenue guidance at about EUR 500 mln
Company expects 2026 EBIT before currency effects of EUR 13 mln to EUR 17 mln
PWO revises 2026 capital expenditure to around EUR 35 mln due to postponed projects
Result Drivers
LOWER TOOL SALES & CURRENCY EFFECTS - Co said revenue was impacted by significantly lower tool revenue and negative currency effects of EUR 5 mln
ABSENCE OF ONE-OFF GAIN - Net income was weighed by the lack of a positive one-off effect from adjustments to customer planning in Canada that benefited the prior year
START-UP EXPENSES - Start-up and ramp-up expenses for new series production, especially in Mexico, weighed on results
Company press release: ID:nEQ86SQx1a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 252.70 mln |
|
H1 Net Income |
| EUR 100,000 |
|
H1 Capex |
| EUR 11.30 mln |
|
H1 Free Cash Flow |
| EUR 3.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 PWO AG is €28.00, about 20.7% above its August 6 closing price of €23.20
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
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(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.)