Fuchs (FPE3) Q3 2025 earnings summary

Executive summary

• Sales for the first nine months of 2025 rose 1% year-over-year to €2,700 million, driven by organic and external growth despite negative currency effects and a challenging economic environment.

• EBIT for the period was €326 million, down 2% year-over-year, as higher costs outpaced sales growth, but Q3 EBIT improved 16% sequentially and slightly exceeded last year's Q3.

• Free cash flow before acquisitions stood at €181 million as of September, down from €194 million in the prior year but remained strong.

• Cost control and avoidance measures initiated earlier in the year showed positive effects in Q3.

• The company confirms its full-year outlook, expecting sales revenues, EBIT, and FVA to match the previous year's levels.

Financial highlights

• Gross profit increased to €941 million, with gross margin improving to 34.9% from 34.6% year-over-year.

• EBIT margin was 12.1%, down from 12.5% year-over-year.

• CapEx remained stable at €51 million, while investments totaled €47 million, up from €38 million year-over-year.

• Net liquidity at September 2025 was €30 million, down from €228 million at December 2024, reflecting dividend payments and acquisitions.

• Net operating working capital as a percentage of sales was 23.0% at Q3 2025, with improvements both in absolute terms and as a percentage of sales.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: sales revenues at €3,525 million, EBIT at €434 million, FVA at €245 million, and free cash flow before acquisitions around €260 million.

• Q4 revenues and EBIT are expected to be broadly in line with the prior year, confirming the 2025 outlook.

• Slightly higher volumes are expected to be offset by negative currency effects, and additional measures are planned to address higher personnel and digitalization costs.

• The economic environment remains challenging, with continued uncertainty due to subdued industrial production, tariff discussions, and geopolitical tensions.