Fuchs (FPE3) Q1 2026 earnings summary

Executive summary

• Achieved record EBIT of €125 million in Q1 2026, up 16% year-over-year, driven by strong organic growth, margin improvement, and one-off gains from an Australian property sale, despite significant currency headwinds and volatile markets.

• Sales revenue reached €934 million, up 1% year-over-year, with organic growth offsetting negative currency effects.

• Demonstrated operational resilience, effective cost management, and successful execution of price increases to offset raw material inflation.

• Closed acquisition of OPET FUCHS, moving to full consolidation and strengthening regional presence.

• Geopolitical tensions, especially in the Middle East, have led to raw material price hikes and supply bottlenecks, impacting cost structure and outlook.

Financial highlights

• EBIT rose to €125 million (up 16%), with EBIT margin at 13.4% (up from 11.7% last year), including a €7 million one-off gain from an Australian property sale.

• Gross margin improved to 35.1%, up 0.8 percentage points year-over-year.

• Earnings per share increased by 15% to €0.68.

• Free cash flow before acquisitions was reported between €54 million and €75 million, up year-over-year.

• Net liquidity at quarter-end ranged from €89 million to €250 million, reflecting seasonal working capital build-up and higher capex.

Outlook and guidance

• Sales expected to increase significantly above €3.7 billion, implying double-digit growth, driven by price increases and the OPET FUCHS acquisition.

• EBIT guidance maintained at around €450 million, with price increases expected to offset raw material inflation.

• Free cash flow before acquisitions expected to be significantly below €270 million due to inflation-driven working capital risk and higher raw material costs.

• Further one-offs related to OPET FUCHS expected in Q2, offsetting Q1's positive one-off in P&L but with no cash effect.

• Committed to growing dividend annually.