Stabilus (STM) Q3 2026 earnings summary

Executive summary

• Revenue and earnings declined in Q3 and 9M FY2026, mainly due to automotive market weakness, especially in APAC, and subdued industrial demand.

• Transformation program and personnel measures executed, delivering cost savings and efficiency improvements.

• Divestiture of Fabreeka and Tech Products finalized, generating a €44.4 million gain and €79.2 million cash-in, sharpening focus on core business.

• Adjusted EBIT margin remained resilient at 10.7% for 9M FY2026 and improved to 10.8% in Q3.

• Free cash flow rose to €123.3 million, mainly from divestment proceeds, while adjusted free cash flow was €56.6 million.

Financial highlights

• Q3 revenue was €299.5 million, down 5.2% year-over-year; 9M FY2026 revenue was €895.5 million, down 8.6% year-over-year.

• Adjusted EBIT for Q3 was €32.2 million, with a margin of 10.8%; 9M adjusted EBIT margin at 10.7%.

• Profit for the period nearly doubled to €68.9 million, supported by divestiture gains.

• Net leverage ratio improved to 2.77x from 3.03x a year earlier, reflecting debt repayment from divestment proceeds.

• Gross margin for 9M FY2026 was 26.5%, down from 27.4% the prior year.

Outlook and guidance

• FY2026 revenue is expected to be around €1.15 billion, with adjusted EBIT margin at or slightly above 10% and adjusted free cash flow near €90 million.

• No significant recovery is anticipated for the remainder of FY2026 due to ongoing trade tensions, protectionism, and geopolitical risks.

• Continued focus on deleveraging, cost management, and innovation in automation and robotics.