Dürr (DUE) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were resilient amid macroeconomic and geopolitical uncertainties, with Automotive and Woodworking divisions performing solidly and Industrial Automation showing mixed results due to BBS Automation's underperformance.

• Net income rose 22% year-over-year to €21 million, with EBIT margin before extraordinary effects increasing to 4.2%.

• Group sales declined 6.7% year-over-year to €940.2 million, mainly due to customer-induced delays and prior-year tariff uncertainties.

• Free cash flow was positive at €26.7–29 million, supported by reduced net working capital.

• 2026 group and divisional guidance confirmed, with expectations for improved order intake, sales, and earnings in upcoming quarters.

Financial highlights

• Sales reached €940.2 million, impacted by customer delays and muted prior-year order intake.

• Gross margin improved by 60 basis points to 23.1%, driven by better utilization and cost reductions.

• EBIT margin before extraordinary effects was 4.2%, with reported EBIT up 13% year-over-year and PPA-related expenses halved to €4.3 million.

• Net financial debt declined to €47 million, with leverage at 0.2x EBITDA and liquidity of €1.06 billion.

• ROCE (annualized) improved to 16.4% from 11.5% year-over-year.

Outlook and guidance

• Full-year 2026 guidance confirmed: order intake €3.8–4.2 billion, sales €3.9–4.3 billion, EBIT margin before extraordinary effects 5.0–6.5%.

• Divisional targets reaffirmed, with Automotive sales expected at €2.0–2.2 billion and EBIT margin 7.0–8.0%.

• Margin improvements expected from cost-cutting and operational enhancements; Industrial Automation outlook under review.

• Free cash flow for 2026 forecasted between -€150 million and €0 million.

• No impact on group outlook expected from potential adjustment in Industrial Automation guidance.