Schaeffler (SHA0) Pre-close call summary

Executive summary

• Q1 2026 sales were slightly lower year-over-year, but showed slight positive FX-adjusted growth and stable customer call-offs, with divisional performance varying by region and segment.

• Adjusted EBIT for Q1 was slightly higher than Q1 2025, with margin improving to 4.7%, well within the full-year guidance range of 3.5%-5.5%.

• Free cash flow was seasonally negative in Q1, but better than prior year and on track for full-year guidance of €100–300 million positive.

• No significant one-off items impacted EBIT in Q1; ongoing normalized cash outflows for restructuring and integration activities.

Trading performance and revenue trends

• Group sales for Q1 2026 reached €5.924 billion, down year-over-year, but with slight FX-adjusted growth.

• E-Mobility and Vehicle Lifetime Solutions divisions reported higher sales year-over-year, while Powertrain & Chassis and Bearings & Industrial Solutions saw declines or flattish trends.

• Market environment remained challenging in the US, moderate in China, and improved in Europe.

Profitability and margins

• Group EBIT margin before special items was 4.7% in Q1 2026, slightly higher than the prior year and within the 3.5% to 5.5% guidance range.

• E-Mobility EBIT margin improved year-over-year but remains below full-year guidance due to seasonality, reported at -22.9%.

• Powertrain & Chassis margin is strong at 12.4%, at the upper half of the 10%-12% guidance, though below last year’s very strong Q1.

• Vehicle Lifetime Solutions EBIT margin remains very strong and stable at 15.7%.

• Bearings & Industrial Solutions margin is slightly lower than prior year but at the upper end of the 7%-9% guidance, reported at 10.1%.

• Margin improvements are supported by ongoing restructuring and integration synergies, with headcount reductions ahead of schedule.