Fuchs (FPE3) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales rose 5% year-over-year to €924 million, driven by business expansion, organic growth, and acquisitions.

• EBIT reached €108 million, up 1% year-over-year, with margin slightly down to 11.7% due to integration and startup costs.

• Gross margin improved to 34.3% from 33.8% in Q1 2024, supported by favorable mix effects.

• Free cash flow before acquisitions was €17 million, up from €3 million a year ago, despite higher capex.

• Earnings per share increased 2% year-over-year to €0.59, aided by a lower share count and share buyback.

Financial highlights

• Sales: €924 million (+5% year-over-year), with growth from organic, external, and currency effects.

• EBIT: €108 million (+1% year-over-year); EBIT margin at 11.7%, down from 12.2% in Q1 2024.

• Gross profit rose 7% to €317 million; cost of sales increased to €607 million.

• Free cash flow before acquisitions: €17 million, up from €3 million in Q1 2024.

• Capex stable at €18 million; total assets increased 5% to €2,736 million.

Outlook and guidance

• Full-year 2025 guidance confirmed: sales around €3.7 billion, EBIT around €460 million, FVA and free cash flow before acquisitions each around €260 million.

• ~5% sales growth expected, mainly volume-driven with stable prices and strict cost management.

• Management remains cautious due to global economic uncertainty, trade conflicts, and geopolitical risks.

• Expect similar seasonality as previous years, with Q2 and Q3 stronger and Q4 softer.

• Confident in achieving another record year if targets are met.