SAF-Holland (SFQ) Q1 2026 earnings summary

Executive summary

• Group sales reached EUR 451.7 million in Q1 2026, up 0.6% year-over-year, with 5.6% organic growth driven by EMEA and APAC, while Americas declined due to weak demand and FX headwinds.

• Adjusted EBIT margin remained stable at 9.4%, and adjusted EBITDA margin was 13%, nearly matching prior year levels.

• Operating free cash flow surged to EUR 44.8 million, reflecting strict working capital and inventory management.

• EMEA and APAC regions led growth, while Americas remained subdued; resilient aftermarket business supported performance.

• Outlook for 2026 is confirmed, with expectations of continued stable performance.

Financial highlights

• Sales increased to EUR 451.7 million, with organic growth of 5.6% largely offset by 5.0% negative FX impact.

• Adjusted EBIT was EUR 42.5 million, margin stable at 9.4%; adjusted EBITDA reached EUR 58.6 million, margin at 13.0%.

• Basic EPS rose to EUR 0.45, while adjusted EPS increased to EUR 0.61.

• Net financial debt decreased by 4.5% to EUR 482.3 million, leverage ratio improved to 2.2x.

• Net working capital improved to 17.1% of sales, within the 16%-18% target corridor.

Outlook and guidance

• Full-year 2026 sales expected between EUR 1,700 million and EUR 1,850 million, with adjusted EBIT margin forecasted at 9–10%.

• Capex ratio targeted at up to 3%, focusing on automation, production network optimization, and IT investments.

• EMEA and APAC expected to drive growth, while Americas stabilizes with potential regulatory-driven momentum.

• Aftermarket business anticipated to remain stable and strategically important.

• No material impact from geopolitical risks currently anticipated, but uncertainties remain.