Sogefi (SGF) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was €492.5 million, stable year-over-year (+0.4% at constant FX, -0.5% at current FX), with growth in Europe and India offsetting declines in China and South America.

• Adjusted EBIT rose 5.8% to €36.8 million, with net profit steady at €18.7 million; free cash flow before IFRS 16 was €13.2 million, up from €10.9 million in H1 2025.

• EBITDA reached €69.5 million, up from €67.8 million in H1 2025; adjusted EBITDA (excluding non-recurring items) was €73.8 million, up from €70.9 million.

• The sale of the Precision Springs unit (3 plants, €28.6m 2025 revenue, €3.8m EBITDA) for €21 million enterprise value is set to close by end of July 2026.

• All financials and guidance exclude Precision Springs, treated under IFRS 5.

Financial highlights

• Contribution margin improved to 30.2% from 29.5% year-over-year due to effective pricing and purchasing management.

• Adjusted EBIT margin increased to 7.5% from 7.0% year-over-year.

• EBITDA margin for Air & Cooling at 17.7%, Suspensions at 12.9%.

• Net debt (excluding IFRS 16) reduced to €8.3 million from €19.2 million at December 2025; including IFRS 16, net debt was €51.2 million at June 2026.

• Free cash flow before IFRS 16 was €13.2 million, up from €11.9 million; after IFRS 16, €7.5 million.

Outlook and guidance

• Upgraded 2026 revenue guidance from low mid-single digit decline to low single digit decline, reflecting strong first half.

• Full-year 2026 revenue expected to decline low-single digit, with adjusted EBIT margin in line with 2025.

• Second half expected to be more challenging due to raw material cost increases and margin pressure.

• Market visibility is limited due to geopolitical and macroeconomic uncertainties, especially in the Middle East.

• S&P Global forecasts a 2.1% decline in global auto production for 2026, with Europe down 1.7%, NAFTA down 1.3%, China down 4.6%, India up 8.6%, and South America up 2.4%.