Schaeffler (SHA0) Pre-close Call summary

Executive summary

• FY 2025 sales are expected at €24.3bn, within the €23–25bn guidance, with Q4 sales flat quarter-over-quarter.

• EBIT margin for FY 2025 is around the midpoint of the 3–5% guidance, with Q4 margin lower than Q3 but higher than Q4 2024.

• Free cash flow for FY 2025 is at the upper end of the €0–200mn guidance, supported by early OEM payments and a significant improvement over the prior year.

• 2025 was marked by market challenges, tariffs, and supply chain issues, but guidance was achieved.

Trading performance and revenue trends

• Electrification/E-Mobility saw slight Q4 year-over-year growth, but FY sales at the lower end of guidance.

• Powertrain & Chassis experienced a moderate Q4 sales decline year-over-year, with FY sales near the lower end of guidance due to phase-outs and a soft European market.

• Vehicle Lifetime Solutions reported robust demand and mid single-digit growth in Q4 and FY, though at the lower end of guidance.

• Bearings & Industrial Solutions faced a soft market, with Q4 sales slightly down year-over-year and FY sales slightly lower than the previous year, but within guidance.

Profitability and margins

• Group EBIT margin for FY 2025 is around the midpoint of the 3–5% guidance range.

• Electrification/E-Mobility Q4 EBIT margin improved year-over-year, supported by R&D reimbursements, but remained negative and within the lower half of guidance.

• Powertrain & Chassis Q4 margin is lower year-over-year due to volume declines, with FY margin in the lower half of the 10–12% guidance.

• Vehicle Lifetime Solutions and Bearings & Industrial Solutions maintained or improved margin profiles, safely within or above guidance.