Fuchs (FPE3) Q1 2026 earnings summary

Executive summary

• Achieved record EBIT of €125 million in Q1 2026, up 16% year-over-year, driven by strong organic growth, margin improvement, and a €7 million one-off gain from an Australian property sale, despite significant currency headwinds.

• Sales reached €934 million, up 1% year-over-year, with organic growth offsetting negative currency effects.

• Free cash flow before acquisitions improved to €54 million, up from €17 million in Q1 2025, though some sources report €75 million.

• Earnings per share increased by 15% to €0.68.

• Geopolitical tensions and raw material price hikes, especially due to Middle East conflict, have impacted costs and outlook.

Financial highlights

• Gross margin improved to 35.1%, up from 34.3% year-over-year.

• EBIT margin reached 13.4%, up from 11.7% in the prior year.

• Net liquidity at end of Q1 2026 reported as €89 million by some sources, while others note an increase to €250 million.

• Capital expenditures increased year-over-year, reported as €21 million or €25 million, in line with full-year guidance.

• Seasonal build-up of net operating working capital was lower than last year.

Outlook and guidance

• Sales for 2026 expected to be significantly above €3.7 billion, driven by price increases, organic growth, and acquisitions.

• EBIT guidance remains at around €450 million, with Q1 one-off gains offset by expected Q2 one-offs.

• Free cash flow before acquisitions projected to be significantly below €270 million due to inflation-driven working capital risk and higher raw material costs.

• Committed to growing the dividend annually.

• Ongoing geopolitical tensions and raw material price volatility present major uncertainties.