Germany's Schaeffler H1 EBIT margin rises to 4.7% as revenue holds steady

Schaeffler AG

05/08/2026 06:41

Overview
German motion technology firm's H1 2026 revenue largely flat yr/yr at EUR 11.7 bln
EBIT margin before special items improved to 4.7% from 4.1% yr/yr
Free cash flow before M&A outflows declined to -€300 mln due to restructuring costs

Outlook
Schaeffler confirms 2026 revenue outlook of €22.5 bln to €24.5 bln
Company expects 2026 EBIT margin before special items of 3.5% to 5.5%
Schaeffler sees 2026 free cash flow before M&A at €100 mln to €300 mln

Result Drivers
E-MOBILITY MARGIN IMPROVEMENT - Co said margin improvement in E-Mobility division was driven by higher volumes and better operating performance at production plants
PORTFOLIO STREAMLINING - Powertrain & Chassis revenue declined due to strategic portfolio streamlining and weak market for combustion engine tech, especially in Greater China and Europe
FAVORABLE PRICING - Vehicle Lifetime Solutions division EBIT margin improved mainly due to favorable pricing offsetting volume impacts

Company press release: ID:nEQ1lfwXza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
EUR 11.70 bln
 
H1 Adjusted Free Cash Flow
 
-EUR 300 mln
 
H1 Net Debt
 
EUR 5.55 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "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 Schaeffler AG is €8.85, about 17.2% above its August 4 closing price of €7.55
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 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.)