Schaeffler (SHA0) Q2 2025 earnings summary

Executive summary

• Solid Q2 performance amid challenging markets, with resilient margins and positive free cash flow.

• Strong E-Mobility growth and improving Bearings & Industrial Solutions margins offset weaker Powertrain & Chassis demand.

• Vitesco integration progressing, with 60% of milestones achieved and the €600m annual synergy target for 2029 confirmed.

• FY2025 guidance confirmed despite trade uncertainty, FX headwinds and ongoing integration demands.

Financial highlights

• Q2 sales were €5,922m, down 2.2% year-over-year at constant currency; gross margin was 19.2%.

• Q2 EBIT before special items was €205m, with a 3.5% margin versus 3.9% in Q2 2024.

• Q2 free cash flow before M&A was positive at €27m; H1 free cash flow before M&A was -€128m versus -€597m pro forma.

• H1 net income attributable to shareholders was €43m and earnings per share were €0.05.

• Q2 capex was €205m versus €331m a year earlier; H1 capex was €455m versus €648m pro forma.

Outlook and guidance

• FY2025 guidance confirmed: sales of €23bn–€25bn, EBIT margin before special items of 3%–5%, and free cash flow before M&A of -€200m to €0.

• E-Mobility is expected to grow 10%+ in H2; Powertrain & Chassis margins are expected at the lower end of guidance, while Bearings & Industrial Solutions is expected at the upper end.

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

• Capital Markets Day scheduled for September 16, 2025, to present mid-term targets.