Fuchs (FPE3) Q2 2026 earnings summary

Executive summary

• Sales revenue reached €2,003 million in H1 2026, up 11% year-over-year, driven by strong organic growth, high customer demand, and a significant demand surge in Q2.

• EBIT rose 24% to €260 million, marking a new half-year record, supported by robust sales, improved gross profit, and a weak prior-year comparison.

• Free cash flow before acquisitions declined to €61 million due to inflation-driven increases in net operating working capital.

• Demonstrated resilience and agility in a volatile market, supported by a broad sourcing network and effective customer service.

• Earnings per share improved by 24% to €1.35 (ordinary) and €1.36 (preference).

Financial highlights

• Gross profit increased to €698 million from €626 million in H1 2025; gross margin held steady at 34.8%.

• EBIT margin improved to 13.0% from 11.6% year-over-year.

• Q2 sales were €1.1 billion, up 14% sequentially and 21% year-over-year.

• Investments in non-current assets totaled €40 million, up 54% year-over-year, mainly due to acquisitions.

• Positive one-time gain from land sale in Australia was offset by negative one-offs from Turkish JV consolidation.

Outlook and guidance

• Updated 2026 EBIT guidance to €460–480 million, up from previous ~€450 million.

• Sales expected to remain significantly above €3.7 billion, driven by inflation and organic growth.

• Free cash flow before acquisitions projected to be significantly below €270 million, reflecting higher working capital and raw material costs.

• Management cautions not to extrapolate first-half results due to temporary effects like pre-buying and competitor supply issues.

• Uncertainty remains high due to geopolitical tensions and raw material price volatility.