SAF-Holland (SFQ) investor relations material

Executive summary

• Group sales declined organically by 11.7% in Q2 2025 to €442.2 million, mainly due to weak OE demand, muted commercial vehicle markets, and tariff-related costs, partially offset by acquisitions and robust aftermarket performance.

• Profitability was resilient with adjusted EBITDA margin at 12.8% and adjusted EBIT margin at 9.1%, supported by cost management and synergies, despite tariff and FX headwinds.

• Net income attributable to shareholders fell 52.2% to €24.0 million, with basic EPS at €0.53, impacted by weaker top line and unfavorable currency developments.

• Leverage increased to 2.4x due to dividend payments, M&A, and new lease liabilities; order intake in Europe improved, but North America and APAC remained soft.

• The company launched the "drive2030" strategy, set new medium-term targets, and completed key management and structural changes.

Financial highlights

• Q2 group sales declined 12.8% year-over-year to €442.2 million; H1 sales were 11.9% below prior year at €891.6 million.

• Adjusted EBIT margin was 9.1% in Q2 and 9.3% for H1; adjusted EBIT fell 25.7% year-over-year to €34.5 million in Q2 and €83.0 million in H1.

• Adjusted EBITDA margin was 12.8% in Q2 and 12.9% for H1.

• Net working capital increased 9.9% to €320 million, with a ratio of 18.2% of sales.

• Operating free cash flow for H1 was €9.1 million; net cash flow from operating activities dropped 51.2% to €30.5 million.

Outlook and guidance

• Full-year 2025 group sales guidance revised to around €1.8 billion (previously up to €2.0 billion), reflecting ongoing market weakness, especially in North America and Asia.

• Adjusted EBIT margin forecast lowered to around 9.3%; CapEx guidance unchanged at up to 3% of group sales.

• Aftermarket business expected to remain stable; gradual improvement anticipated in EMEA and APAC in H2 2025.

• Dividend payout ratio remains at 40–50% of adjusted net income, with new calculation method to exclude unrealized FX effects.

• North American truck and trailer markets expected to be 20–30% below prior year; EMEA shows improving order intake, APAC to recover towards year-end.