Washtec (WSU) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached a record €111.3m, up 2.3% year-over-year, mainly driven by strong North America Equipment sales.

• EBIT declined to €3.8m (3.4% margin), down from €4.9m (4.5% margin) last year, due to higher planned costs and delays in efficiency projects, especially in Europe.

• Free cash flow dropped to €7.0m from €16.5m, mainly due to increased inventory and lower operating cash inflow.

• Major production expansion in Nýřany, Czech Republic, began in March 2026, transferring 50% of jobs and enhancing capacity.

• New JetWash/JetBay Connect launched in April 2026, featuring local steel sourcing, improved payment, and enhanced polish, aiming to expand equipment business share.

Financial highlights

• Revenue: €111.3m (+2.3% YoY); EBIT: €3.8m (down from €4.9m); Net income: €2.2m (down from €2.9m); EPS: €0.17 (down from €0.22).

• Equipment revenues grew 6.7%–7% YoY; Service stable; Consumables declined 4.8% due to weather.

• Gross margin decreased to 28.4% from 29.3% last year, impacted by product mix and temporary higher costs.

• Equity ratio dropped to 28.0% from 32.5% YoY.

• Net working capital rose to €94m from €82m in March 2025; net financial debt increased due to higher dividends, share buybacks, and working capital.

Outlook and guidance

• Guidance for 2026 confirmed: mid-single-digit revenue growth and EBIT growth outpacing revenue.

• Free cash flow guidance: €35m–€45m; ROCE to rise by 0.5–2.0 percentage points.

• Delays in efficiency projects expected to be resolved during the year.

• Guidance excludes further significant Middle East conflict escalation; high uncertainty and raw material volatility noted.