SAF-Holland (SFQ) Q4 2025 earnings summary

Executive summary

• Group sales reached EUR 1,734.4 million in 2025, reflecting an organic decline of 6.5% to 7.6% year-over-year due to weak OE demand, especially in North America and APAC, but with resilience in the aftermarket business and cost discipline.

• Profitability remained solid with an adjusted EBIT margin of 9.5% and adjusted EBITDA margin of 13.3%, supported by strict cost management, synergies from the Haldex takeover, and favorable product mix.

• Aftermarket business share increased to nearly 40% of total sales, providing stability and supporting earnings resilience.

• Operating free cash flow was EUR 111.1 million, with leverage at 2.3x, mainly due to new lease liabilities.

• Sustainability performance improved, with a 6% reduction in Scope 1 and 2 CO2 emissions and enhanced safety metrics.

Financial highlights

• FY 2025 sales: EUR 1,734.4 million, down 6.5% to 7.6% year-over-year, including a negative FX impact of 2.3 percentage points.

• Q4 organic sales grew 4.4% year-over-year, driven by EMEA recovery.

• Adjusted EBIT was EUR 164.0 million, down from EUR 190.5 million year-over-year; adjusted EBIT margin was 9.5% (full year), 10.1% (Q4).

• Adjusted EPS was EUR 1.86 for 2025, down 23.5% year-over-year.

• Net cash flow from operating activities totaled EUR 160.3 million for the year; free operating cash flow was EUR 111.1 million.

Outlook and guidance

• 2026 sales forecasted at EUR 1.7–1.85 billion, assuming stable exchange rates, with adjusted EBIT margin targeted at 9–10%.

• CapEx ratio expected up to 3% of sales, focusing on production network optimization, automation, and SAP rollout.

• Positive business development expected in EMEA and APAC; North America to remain subdued unless regulatory changes boost demand.

• Net working capital ratio expected to remain within 16–18% of sales.

• Ongoing efficiency programs to offset wage inflation and support margin resilience.