hGears (HGEA) Q2 2026 earnings summary

Executive summary

• Revenue declined 5.6% year-over-year to EUR 46.8 million in H1 2026, mainly due to weak demand in e-Bike and e-Tools, partially offset by 7% growth in [e]-Mobility, which stabilized group performance.

• Adjusted EBITDA was positive at EUR 0.4 million (0.8% margin), reflecting effective cost and efficiency measures despite lower volumes and negative FX effects.

• Free cash flow improved by EUR 3.4 million year-over-year to EUR 1.1 million, supported by optimized net working capital and cash preservation.

• Equity ratio declined to 27.0% from 31.9% at year-end 2025.

• Guidance for fiscal year 2026 confirmed.

Financial highlights

• Group sales declined by 5.6% year-over-year to EUR 46.8 million in H1 2026.

• Adjusted gross profit was EUR 21.0 million, with an adjusted gross margin of 44.9%, down from 45.6% year-over-year.

• Adjusted EBITDA margin was 0.8%, compared to 2.2% in the prior year.

• Free cash flow improved to EUR 1.1 million.

• Net debt reduced to EUR 18.8 million at end of June 2026.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenue expected at EUR 80–90 million, adjusted EBITDA between EUR -3 million and EUR 0, and free cash flow between EUR -5 million and EUR -2 million.

• Management remains cautious due to ongoing geopolitical and economic uncertainties, with limited visibility in e-Bike and stable expectations for [e]-Mobility and e-Tools.