ElringKlinger (ZIL2) Q2 2025 earnings summary

Executive summary

• Organic sales grew 4.8% year-over-year in Q2 2025, outpacing the market, with strong contributions from E-Mobility, Aftermarket, and Engineered Plastics units.

• Adjusted EBIT margin reached 5.9% in Q2 2025, in line with targets and expectations.

• New CFO Isabelle Damen joined, strengthening the leadership team.

• Transformation strategies, including divestments and cost reduction programs, continued to sharpen strategic focus.

• Dividend of EUR 0.15 per share confirmed at AGM.

Financial highlights

• Q2 2025 revenue was EUR 408.3 million, with organic growth of 4.8% year-over-year despite FX and divestment impacts.

• Adjusted EBIT margin was 5.9% in Q2 2025; adjusted EBITDA margin reached 11.6%.

• Operating free cash flow improved to EUR 23.8 million in Q2 2025.

• Net financial debt increased to EUR 374.9 million; net debt-to-EBITDA ratio at 2.1.

• Equity ratio stood at 36.7% at the end of Q2 2025.

Outlook and guidance

• Full-year 2025 guidance confirmed: organic revenue expected at prior-year level, adjusted EBIT margin around 5%, and operating free cash flow at 1–3% of revenue.

• Medium-term margin target set at 7–8%; adjusted ROCE around 6%.

• CapEx ratio for 2025 expected between 4% and 6% of sales.

• H2 2025 expected to be weaker than H1, with normalization of capex and improved cash flow.

• Ramp-up of large-scale e-mobility orders and new battery hub in the US to drive future growth.