SAF-Holland (SFQ) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw group sales decline organically by 2.5% to EUR 417.2 million, about 5% below the prior year, amid challenging market conditions and softer OE demand, but profitability remained solid with a 9.1% adjusted EBIT margin and 13.2% adjusted EBITDA margin.

• Operating free cash flow improved to EUR 38.5 million in Q3, and leverage remained stable at 2.4x, despite dividend payments, M&A, and new lease liabilities.

• The company maintained operational discipline, with the aftermarket business showing resilience and contributing over 39% of group sales.

• The Assali Stefen acquisition contributed a low single-digit million euro amount to sales.

• Net income attributable to shareholders dropped 36.3% to EUR 37.9 million for Q1–Q3 2025.

Financial highlights

• Group sales for Q3 2025 were EUR 417.2 million (down from EUR 439.9 million in Q3 2024), with a 5.2% year-over-year decline and a 9.9% drop for the first nine months of 2025.

• Adjusted EBIT margin was 9.1% in Q3 (PY: 9.8%), and adjusted EBITDA margin was 13.2% (PY: 13.5%).

• Reported EBIT for Q3 dropped 21.7% to EUR 28.9 million, with restructuring and transaction costs totaling EUR 3.8 million.

• Basic EPS increased to EUR 0.31 in Q3 (Q3 2024: 0.20), while adjusted EPS rose to 0.50 (Q3 2024: 0.42).

• Net working capital increased by 11.2% to EUR 297.3 million, with a ratio of 18.7% of sales.

Outlook and guidance

• Full-year 2025 group sales guidance revised to EUR 1.7–1.75 billion, reflecting continued market softness and currency headwinds, especially in North America and Asia.

• Adjusted EBIT margin guidance remains unchanged at around 9.3%; CapEx ratio expected up to 3%.

• Efficiency program targeting SG&A optimization may incur high single-digit million Euro costs by year-end.

• North American truck and trailer markets expected to decline 20–30% year-over-year; Chinese CV markets forecasted to grow 10–20% due to government stimulus.

• Aftermarket expected to remain stable.