Schaeffler (SHA0) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached EUR 5,924 million, down 2.9% year-over-year, with strong growth in E-Mobility and Vehicle Lifetime Solutions, but declines in Powertrain & Chassis and Bearings & Industrial Solutions.

• EBIT margin before special items held steady at 4.7% year-over-year on a pro-forma basis.

• Free cash flow before M&A was negative at EUR -155 million, improved from Q1 2024, mainly due to seasonal factors.

• EPS was EUR 0.09, slightly positive on an unadjusted basis.

• Integration of Vitesco completed, with new reporting structure and pro forma results now focused on four divisions.

Financial highlights

• Gross margin improved to 21.5% (up from 19.2% adjusted prior year), mainly due to production cost improvements.

• EBIT before special items was EUR 276 million (4.7% margin), unchanged year-over-year.

• SG&A cost improvements and production efficiencies offset higher R&D expenses, especially in E-Mobility.

• Pro forma leverage ratio at 2.2x; strong liquidity position above EUR 5 billion as of April 1, 2025.

• CapEx was EUR 250 million, with reinvestment rate at 0.6x.

Outlook and guidance

• Full-year 2025 guidance confirmed: group sales EUR 23.0–25.0 billion, EBIT margin 3–5%, free cash flow EUR -200 to 0 million.

• Segment EBIT margin guidance: E-Mobility -17% to -14%, Powertrain & Chassis 10–12%, Vehicle Lifetime Solutions 14–16%, Bearings & Industrial Solutions 5–7%.

• Management remains optimistic about outperforming the market, supported by strong order intake and business KPIs.

• Midterm targets to be shared at Capital Markets Day in September.

• Company expects to pass on new tariffs to customers but notes high uncertainty due to global trade conflicts.