Sogefi (SGF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were €250.2 million, up 0.7% at constant exchange rates but down 2.3% at current rates, with growth in Europe, North America, and India offset by declines in China and South America.

• Adjusted EBITDA rose to €36.5 million (14.6% of revenues), and EBIT increased to €17.2 million (6.9% margin), both up year-over-year.

• Net profit reached €10.9 million, up from €9.0 million in Q1 2025, with operating activities net income at €11.7 million.

• Free cash flow excluding IFRS 16 improved to €14.3 million from €8.7 million; including IFRS 16, it was €7.7 million.

• Signed agreement to divest Precision Springs unit for €20 million, expected to close by Q3 2026.

Financial highlights

• Contribution margin increased to 30.4% from 29.6% year-over-year.

• EBITDA margin improved to 14.5% from 13.2%, and EBIT margin rose to 6.9% from 5.9% year-over-year.

• Net debt decreased to €48.6 million from €56.3 million at year-end 2025; net debt excluding IFRS 16 was €4.8 million.

• Free cash flow improved due to lower capex and reduced use of factoring.

• Financial expenses fell to €2.4 million from €2.7 million.

Outlook and guidance

• Guidance for 2026 is for a low- to mid-single-digit revenue decline, with adjusted EBIT margin expected to remain in line with 2025, barring unforeseen non-recurring charges.

• Market visibility is limited due to geopolitical uncertainties, especially in the Middle East, impacting inflation, trade, and supply chains.

• S&P Global forecasts global car production to decline 1.8% in 2026, with Europe and NAFTA down, and India and South America up.

• Q2 expected to remain stable, with raw material cost impacts likely deferred to Q3 and beyond.