ElringKlinger (ZIL2) Q1 2026 earnings summary

Executive summary

• Revenue grew 1.6% year-over-year to EUR 430 million in Q1 2026, with organic growth of 4.7% outpacing a 3.4% decline in global automotive production.

• E-Mobility sales surged 42% year-over-year to EUR 38 million, with strong momentum in Aftermarket and Engineered Plastics segments.

• Transformation programs (SHAPE30, STREAMLINE, SHAPE2EMPOWER) delivered cost savings and organizational restructuring, including a 6% headcount reduction.

• Order intake rose 17.9% to EUR 491.4 million, and order backlog increased 6.3% to EUR 1,196.2 million.

• Management Board changes: Reiner Drews stepped down, Ulrich Zimmer appointed as successor effective July 1, 2026.

Financial highlights

• Adjusted EBIT reached EUR 29.1 million (6.8% margin), up from EUR 20 million last year; reported EBIT at EUR 28 million (6.6% margin).

• Adjusted EBITDA rose to EUR 59.1 million from EUR 41.9 million; reported EBITDA at EUR 58 million.

• Net working capital at EUR 383 million (23% of sales), meeting the target of staying below 25%.

• Operating free cash flow was negative at EUR -109 million, mainly due to ramp-up of large orders and restructuring expenses.

• Net financial debt increased to EUR 430 million; adjusted net debt/EBITDA ratio at 2.1.

• Group equity at EUR 686 million, slightly above Q4 2025; equity ratio at 35.1%.

Outlook and guidance

• Full-year 2026 guidance confirmed: slight organic revenue growth, adjusted EBIT margin of 6–7%, and operating free cash flow expected to be just within positive territory.

• E-Mobility business targeted to reach break-even on a full-year basis by 2028, with possible quarterly break-even in 2027.

• CapEx guidance for 2026 at 4–6% of sales, with medium-term target of 2–4%.

• Medium-term targets include moderate organic growth, adjusted EBIT margin of around 8%, ROCE adjusted at least 11%, and net debt/EBITDA between 1.0–2.0x.

• Focus remains on profitable growth, cash flow generation, and further net debt reduction.