Schaeffler (SHA0) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was €11.7 billion, stable year-over-year at constant currency, reflecting resilience amid a challenging market environment and regional volatility.

• EBIT before special items rose 14% year-over-year to €549 million, with margin improving to 4.7% from 4.1%.

• Net income more than doubled to €93 million, and EPS increased to €0.10.

• Workforce reduced by 3,946 employees year-over-year, totaling 108,912 as of June 30, 2026, with structural measures and early retirement programs extended ahead of plan.

• Progress in humanoid robotics and defense sectors contributed to performance, with the humanoid business order book at €350 million (with >50% haircut), covering three major OEMs.

Financial highlights

• Gross margin improved to 20.9% (prior year: 20.3%), with EBIT margin rising to 4.7%.

• Free cash flow before M&A was negative at €-300 million, mainly due to €236 million in planned restructuring and integration outflows, but confidence was expressed in achieving the full-year target.

• Capital expenditures were €432 million, compared to €455 million in the prior year.

• EPS for H1 2026: €0.10, doubled from H1 2025.

• Sales growth was flat overall, with regional variation: Americas and Asia/Pacific positive, Europe and Greater China declined.

Outlook and guidance

• Full-year 2026 revenue expected between €22.5–24.5 billion, with constant-currency growth of -4.3% to 4.3%.

• EBIT margin before special items forecasted at 3.5–5.5% for 2026; free cash flow before M&A projected at €100–300 million.

• Midterm targets for top-line growth were reduced, but EBIT margin (6%-8%) and free cash flow targets for 2028 remain.

• E-Mobility EBIT margin guidance was lowered to -15% to -13%, reflecting market realities but ongoing efforts to reach break-even.

• Full-year guidance confirmed despite market volatility.