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Live2026-08-20 05:22 UTC+22 todayUpdated

Schaeffler improves H1 2026 EBIT margin to 4.7%, confirms full-year outlook

Schaeffler held first-half revenue flat at €11.7 billion and lifted its EBIT margin before special items to 4.7%, confirming its 2026 guidance.

Revenue
€11,667 million
EBIT margin before special items
4.7%
Free cash flow before M&A
-€300 million
Net income
€93 million

What Happened

Schaeffler reported first-half 2026 revenue of €11,667 million, roughly flat year-on-year and up 0.4% in currency-adjusted terms despite challenging market conditions. Group EBIT before special items rose to €549 million from €482 million, lifting the margin to 4.7% from 4.1%. The diversified setup with four product divisions helped offset weaker areas with growth in others; by region, currency-adjusted sales rose 0.9% in the Americas and 7.1% in Asia/Pacific, while falling 0.5% in Europe and 3.7% in Greater China.

Segment performance, H1 2026 vs H1 2025
E-Mobility
Revenue €2,578m (+7.7%); EBIT margin -15.6% vs -19.3%
Powertrain & Chassis
Revenue €4,247m (-3.4%); EBIT margin 11.1% vs 11.6%
Vehicle Lifetime Solutions
Revenue €1,601m (~flat); EBIT margin 15.5% vs 14.7%
Despite a still challenging global environment with rapidly changing conditions, the Schaeffler Group maintained revenue at prior-year level in the first half of 2026 and achieved a good result. Our broad positioning as a Motion Technology Company with four product-oriented divisions and our new growth fields are decisive for this. In the reporting period we made further good progress especially i
Klaus Rosenfeld, CEO of Schaeffler AG

Free cash flow before M&A was minus €300 million, compared with minus €128 million a year earlier, dragged by €236 million of planned restructuring and integration payments. Net income attributable to shareholders rose to €93 million from €43 million, and earnings per share came to €0.10. Net financial debt stood at €5,545 million at June 30, up from €4,915 million at the end of 2025.

Our consistent focus on improving operational performance in the first half is showing effect, particularly in the E-Mobility and Bearings & Industrial Solutions divisions. In Powertrain & Chassis and Vehicle Lifetime Solutions, the strong earnings contributions support the solid profitability of the Schaeffler Group. We are clearly directing our investments to our future fields and remain discipl
Christophe Hannequin, CFO of Schaeffler AG

For 2026, Schaeffler confirms revenue guidance of roughly €22.5–24.5 billion, implying currency-adjusted growth of -4.3% to +4.3%, an EBIT margin before special items of 3.5–5.5%, and free cash flow before M&A of €100–300 million. The company said the adjustment of its 2028 medium-term targets was reported in a separate notice on July 31, 2026. Headcount declined to 108,912 at June 30, down 3,946 from a year earlier.

Why this matters

The results show how a major automotive supplier is coping with a tough market: weak demand in Greater China and Europe was offset by growth in the Americas and Asia/Pacific. The improved margin, especially in the loss-making E-Mobility division, suggests operational progress is starting to pay off. Investors and employees get stability from confirmed guidance, though negative free cash flow and rising debt highlight ongoing restructuring costs.

Terms in This Story

EBIT
Earnings before interest and taxes, a measure of operating profitability.
Free cash flow
Cash generated by operations minus capital expenditures, before financing activities.
Special items
One-off or exceptional charges that are excluded to show underlying performance.
Currency-adjusted
Figures adjusted for foreign exchange rate effects to show underlying growth.
Read Original: Schaeffler Group

Summarised from the linked release; details can be imperfect — always verify against the original source.