ElringKlinger (ZIL2) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached EUR 423.1 million, with 2.2% organic growth, outperforming global automotive production growth of 1.3%.

• Continued execution of the SHAPE30 transformation strategy and launch of the STREAMLINE cost reduction program targeting at least EUR 30 million in annual savings from 2026.

• E-Mobility and aftermarket segments delivered strong growth, with E-Mobility revenue more than doubling.

• Management Board expanded with a new CFO joining in August 2025.

• Celebrating the 100th anniversary of the founder with commemorative initiatives.

Financial highlights

• Q1 2025 sales revenue was EUR 423.1 million, down from EUR 465.3 million year-over-year, mainly due to divestments and currency effects; organic revenue grew 2.2%.

• Adjusted EBIT margin was 4.9%, in line with the full-year target; adjusted EBIT was EUR 20.5 million.

• Adjusted EBITDA was EUR 41.9 million, down from EUR 50.8 million year-over-year.

• Capex rose to EUR 45 million, with a capex ratio up to 10.6%, reflecting investments in e-mobility projects.

• Operating free cash flow was negative EUR 120.3 million, mainly due to high investment and working capital needs.

• Net financial debt increased to EUR 370.4 million; net debt/EBITDA at 2.1.

Outlook and guidance

• 2025 organic sales expected at previous year's level, excluding divested entities; adjusted EBIT margin guidance confirmed at around 5%.

• Operating free cash flow projected at 1–3% of revenue; net debt/EBITDA target around 2.

• Medium-term targets reaffirmed: adjusted EBIT margin of 7–8% over three to five years.

• E-mobility revenues expected in the EUR 130–150 million range for the full year.