Stabilus (STM) Q1 2026 earnings summary

Executive summary

• Revenue declined by 10.7% year-over-year to €291.1 million in Q1 FY2026, mainly due to softer demand, price pressure, and negative FX impacts, with organic revenue down 7.0%.

• Adjusted EBIT margin dropped by 1.5pp to 10.1%, but China’s margin recovered to 18% quarter-over-quarter.

• Profit for the period decreased 43.4% to €8.1 million, reflecting higher finance costs and net FX losses.

• Free cash flow and adjusted free cash flow more than doubled year-over-year to €23.9 million, driven by improved working capital management.

• Transformation program delivered significant overhead cost reductions, with further savings expected.

Financial highlights

• Revenue: €291.1 million (down 10.7% year-over-year); organic ▼7.0%, FX ▼3.7%.

• Adjusted EBIT: €29.3 million (down 22.5% year-over-year); margin 10.1%.

• Profit: €8.1 million (down 43.4% year-over-year); margin 2.8%.

• EPS: €0.31 (down 44.6% year-over-year).

• Adjusted free cash flow: €23.9 million (up 168.5% year-over-year).

Outlook and guidance

• FY2026 guidance confirmed: revenue €1.1–1.3 billion, adjusted EBIT margin 10–12%, adjusted free cash flow €80–110 million.

• Q2 expected to be flat in revenue due to Chinese New Year and soft automotive demand; significant improvement anticipated in H2 from new product launches and restructuring benefits.

• Price erosion in China expected to normalize to 4–5% in FY2026, down from 8% last year.

• Macroeconomic and geopolitical uncertainty continues to weigh on the outlook, with a slight decline in business volume anticipated.