SAF-Holland (SFQ) Q3 2025 earnings summary

Executive summary

• Q3 2025 group sales declined organically by 2.5% to EUR 417.2 million, about 5% below the prior year, amid challenging market conditions and softer OE demand, especially in North America and Asia.

• Profitability remained resilient with a 9.1% adjusted EBIT margin and a 13.2% adjusted EBITDA margin; operating free cash flow improved to EUR 38.5 million in Q3.

• The aftermarket business demonstrated resilience, declining only 2.5% year-over-year and contributing over 39% of group sales.

• Regional performance varied: EMEA returned to positive growth, Americas faced a 13.6% sales drop, and APAC saw a 21.5% decline, mainly due to U.S. trade policy impacts and FX effects.

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

Financial highlights

• Group sales for the first nine months were 9.9% below the previous year at EUR 1,308.8 million; organic sales down 9.7% year-over-year.

• Adjusted EBIT for the first nine months totaled EUR 121.1 million (9.3% margin); adjusted EBITDA margin at 13.1%.

• Reported EBIT for Q3 declined 21.7% to EUR 28.9 million; EPS improved by 49.4% to EUR 0.31 in Q3 due to lower interest and tax expenses.

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

• Investments in property, plant, and equipment and intangibles totaled EUR 31.7 million (2.5% of sales), focused on automation and plant expansion.

Outlook and guidance

• Full-year 2025 group sales guidance revised to EUR 1,700–1,750 million (previously ~EUR 1,800 million), reflecting ongoing market softness and currency headwinds.

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

• Efficiency program initiated to optimize SG&A structures, with expected high single-digit million Euro adjusted expenses 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 stimulus.