Schaeffler (SHA0) Pre-Close Call summary

Executive summary

• Q1 2025 sales reached EUR 6,141 million, flat quarter-over-quarter but slightly lower year-over-year, despite challenging market conditions.

• EBIT margin before special items was 4.7%, at the upper end of full-year guidance, showing improvement from a weak Q4 2024.

• Free cash flow was negative at EUR -272 million in Q1, consistent with seasonal patterns but improved versus Q1 last year.

• Guidance for fiscal year 2025 confirmed, though full impact of new tariffs remains unquantified.

Trading performance and revenue trends

• E-Mobility division saw strong year-over-year growth, especially in Europe and Asia-Pacific, supported by successful launches.

• Powertrain & Chassis experienced declining sales, mainly in Europe, due to market decline for HEVs and ICE, but EBIT margin improved quarter-on-quarter.

• Vehicle Lifetime Solutions achieved double-digit sales growth, mainly driven by the Americas, with stable EBIT margin year-on-year.

• Bearings & Industrial Solutions faced slightly lower sales year-over-year due to European weakness, but EBIT margin improved from Q4 2024.

Profitability and margins

• Group EBIT margin is at the upper end of guidance at 4.7%, with improvement over Q4 2024.

• E-Mobility EBIT higher year-over-year and stable versus last quarter, aided by ramp-ups and volume increases.

• Powertrain & Chassis EBIT margin stable year-over-year, improved from last quarter.

• Vehicle Lifetime Solutions EBIT margin stable year-over-year, with quarter-on-quarter improvement.

• Bearings & Industrial Solutions EBIT margin slightly lower year-over-year but improved from Q4 2024.