Schaeffler (SHA0) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 1.3% at constant currency to €5.826bn; EBIT margin before special items rose to 4.5% from 3.5% year over year.

• Q3 gross margin was 20.3% excluding SAP license depreciation, versus 18.5% reported; 9M revenue was €17.672bn, down 1.3% at constant currency on a pro-forma basis.

• Q3 free cash flow before M&A reached €175m; 9M free cash flow before M&A was €47m, versus -€960m pro forma a year earlier.

• 9M net loss attributable to shareholders was €244m and EPS was -€0.26; net income excluding special items was €55m.

• Reporting shifted to four product-focused divisions and an Others division, effective January 2025.

Financial highlights

• Q3 sales were €5.826bn, up 1.3% at constant currency but down 2.0% on a pro-forma comparison; EBIT before special items was €264m.

• 9M EBIT before special items was €746m, versus €737m pro forma; margin improved to 4.2% from 4.0%.

• 9M gross margin was 19.8%, versus 23.1% a year earlier; reported EBIT was €406m, down from €730m.

• Q3 operational improvements delivered €111m in cost savings, mainly from Bearings & Industrial; volume contributed €119m to growth, with nearly half from E-Mobility.

• Q3 free cash flow before M&A improved by more than €500m year over year.

Outlook and guidance

• FY 2025 revenue guidance remained €23.0–25.0bn and EBIT margin before special items 3–5%.

• FY 2025 free cash flow before M&A guidance rose to €0–200m from -€200m to €0m.

• Bearings & Industrial Solutions EBIT margin guidance increased to 6–8% from 5–7%; revenue guidance remained €6.0–6.75bn.

• Division guidance remained: E-Mobility revenue €5.0–5.5bn and margin -17% to -14%; Powertrain & Chassis revenue €9.0–9.5bn and margin 10–12%; Vehicle Lifetime Solutions revenue €3.0–3.25bn and margin 14–16%.

• Q4 was expected to be seasonally weaker; E-Mobility and Powertrain & Chassis margins were expected to remain strong, while industrial faced headwinds.