Sogefi (SGF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were €250.2 million, up 0.7% at constant exchange rates but down 2.3% at current rates, with growth in Europe, North America, and India offsetting declines in China and South America.

• EBITDA rose to €36.5 million, and adjusted EBIT was €17.4 million (6.9% margin), both up year-over-year.

• Net income increased to €11.7 million from €9.8 million, with operating activities net income at €11.7 million and net profit at €10.9 million.

• Free cash flow excluding IFRS 16 improved to €14.3 million from €8.7 million; including IFRS 16, it was €7.7 million.

• Agreement to divest Precision Springs unit for €20 million, expected to close by Q3 2026.

Financial highlights

• Contribution margin rose to 30.4% from 29.6% due to effective pricing and purchasing management.

• Fixed costs remained stable or slightly decreased.

• EBITDA margin increased to 14.5% from 13.2% year-over-year.

• Net debt including IFRS 16 at end of March 2026 was €48.6 million, down from €56.3 million at end 2025; net debt excluding IFRS 16 was €4.8 million.

• Free cash flow improved due to lower capex and reduced use of factoring.

Outlook and guidance

• Guidance for 2026 is for a low- to mid-single-digit revenue decline, with adjusted EBIT margin expected to remain in line with 2025, barring unforeseen non-recurring charges.

• Q2 expected to remain stable, with raw material cost impacts likely deferred to Q3 and beyond.

• Market visibility is limited due to geopolitical uncertainties, especially in the Middle East, affecting inflation, trade, and supply chains.

• S&P Global projects a 1.8% decline in global auto production for 2026, with Europe and NAFTA down and India and South America up.