ElringKlinger (ZIL2) Q2 2026 earnings summary

Executive summary

• Group revenue grew 17.3% year-over-year to EUR 478.9 million in Q2 2026, driven by strong E-Mobility ramp-up and organic growth of 18.6%.

• E-Mobility sales more than doubled to EUR 85.4 million, now 18% of group sales, including EUR 28.1 million in one-time ramp-up effects.

• Adjusted EBIT margin improved to 6.0% in Q2 2026, up from 5.9% in Q2 2025, with cost savings and operational improvements on track.

• Transformation programs SHAPE30, SHAPE2EMPOWER, and STREAMLINE are progressing, focusing on efficiency, workforce realignment, and competitiveness.

• Management changes include the appointment of Ulrich Zimmer as COO and the planned departure of CFO Isabelle Damen.

Financial highlights

• Adjusted EBITDA rose 7% year-over-year to EUR 54 million; margin at 11.2%.

• Adjusted EBIT up 19% to EUR 29 million; margin at 6%.

• Adjusted net income attributable to shareholders increased 63% to EUR 15.2 million; EPS up 50% to EUR 0.18.

• Operating free cash flow surged 118% to EUR 51.9 million; free cash flow ratio at 10.8%.

• Net financial debt at EUR 374.1 million; net debt/EBITDA ratio at 1.9x; equity ratio at 35.5%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: slight organic revenue growth, adjusted EBIT margin of 6–7%, slightly positive operating free cash flow, and adjusted ROCE of 8–9%.

• Medium-term targets include moderate organic growth, EBIT margin of ~8%, and net debt/EBITDA between 1.0–2.0.

• Global light vehicle production forecast to decline 2.1% in 2026, but long-term growth expected by 2030.

• Focus remains on profitability, cash generation, and strategic execution amid challenging market and volatility.