Schaeffler (SHA0) Q1 2025 earnings summary

Executive summary

• Q1 revenue was €5,924m, down 2.9% at constant currency on a pro forma basis; EBIT margin before special items held at 4.7%.

• E-Mobility and Vehicle Lifetime Solutions grew, while Powertrain & Chassis and Bearings & Industrial Solutions declined.

• Free cash flow before M&A was -€155m, improving from -€272m in Q1 2024; the shortfall reflected seasonal factors.

• First reporting period under the four-division structure following Vitesco integration.

Financial highlights

• Revenue was €5,924m versus €6,141m pro forma in Q1 2024; decline was 2.9% at constant currency and 3.5% on a reported comparable basis.

• Gross margin rose to 21.5%, up 2.3pp versus adjusted Q1 2024, driven by production cost improvements and divisional gains.

• EBIT before special items was €276m versus €287m pro forma; margin remained 4.7%.

• Net income attributable to shareholders was €83m; earnings per share were €0.09.

• Free cash flow before M&A was -€155m versus -€272m; capex was €250m versus €317m pro forma.

Outlook and guidance

• FY 2025 guidance confirmed: revenue €23bn–€25bn, EBIT margin before special items 3%–5%, and free cash flow before M&A -€200m to €0m.

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

• Global light vehicle production is expected to decline 1.7% in 2025; industrial production growth is forecast at 2.3%.

• New tariffs are expected to be passed on to customers, but trade-policy uncertainty makes their impact difficult to quantify.