SAF-Holland (SFQ) Q2 2025 earnings summary

Executive summary

• Q2 2025 group sales declined 13% year-over-year to EUR 442.2 million, mainly due to weak OE demand, muted commercial vehicle markets, and tariff-related costs, but profitability remained resilient with a 9.1% adjusted EBIT margin and 12.8% adjusted EBITDA margin.

• Operating free cash flow was EUR 0.9 million, constrained by lower sales and higher working capital needs amid tariff uncertainties.

• Aftermarket business remained robust, accounting for up to 40.8% of sales, partially offsetting declines in OE sales.

• Trade policy uncertainty and unfavorable FX developments significantly impacted results and outlook, especially in North America and Asia.

• The "drive2030" strategy was launched, with new medium-term targets and key management changes.

Financial highlights

• Q2 2025 sales were EUR 442.2–442.4 million, an organic decline of 11.7% year-over-year, with FX effects reducing sales by 2.7%.

• Adjusted EBIT margin was 9.1% (PY: 10.7%), with adjusted EBIT at EUR 34.5 million.

• Adjusted EBITDA margin for H1 2025 was 13.1%, nearly matching the prior year.

• Net cash flow from operating activities in H1 was EUR 30.5 million; operating free cash flow reached EUR 9.1 million.

• Basic EPS for Q2 was EUR 0.24 (PY: EUR 0.53), and adjusted EPS was EUR 0.38 (PY: EUR 0.69).

Outlook and guidance

• 2025 sales guidance revised to around EUR 1.8 billion due to continued weak North American and Asian markets, with positive momentum in Europe and India.

• Adjusted EBIT margin forecast lowered to around 9.3%.

• CapEx guidance unchanged at up to 3% of group sales.

• Dividend payout ratio remains at 40–50% of adjusted net income, with new calculation method to exclude unrealized FX effects.

• Expectation of improved order intake in EMEA and recovery in APAC towards year-end.