Stabilus (STM) Q4 2025 earnings summary

Executive summary

• Achieved €1.3 billion in sales and an adjusted EBIT margin of 11% for fiscal 2025, with free cash flow of €119 million, despite challenging market conditions, global tariff conflicts, unfavorable product mix, and higher pricing pressure in automotive, as well as a weak US dollar.

• Transformation program underway, targeting long-term sustainability through cost reductions and organizational streamlining, including a 6% global workforce reduction (around 450 employees).

• New CFO Andreas Jaeger appointed in November 2025.

• Launched new products, notably the e-gripper family and electric smart 3-jaw gripper, and harmonized sales channels to strengthen industrial and automation segments.

Financial highlights

• FY2025 revenue: €1,296.1m, down 0.8% year-over-year; organic -4.6%, M&A +7.0%, FX -3.2%.

• Adjusted EBIT: €142.6m, down 9.2% year-over-year; margin 11.0%.

• Q4 sales reached €316 million, with EBIT margin consistent at 11%; full-year free cash flow totaled €119 million.

• Profitability in Q4 impacted by an €18 million restructuring accrual; full-year net leverage ratio at 2.96.

• Net financial debt increased to €794.4m; net working capital improved by €23 million, with NWC/revenue ratio at 17.9% at end FY2025.

Outlook and guidance

• Fiscal 2026 guidance: sales between €1.1–1.3 billion, adjusted EBIT margin of 10–12%, and free cash flow of €80–110 million.

• Assumptions include 3% global GDP growth, 2–3% decline in light vehicle production, and stable to slightly decreasing material costs.

• Target to reduce net leverage ratio below 2.0 within three years; mid-term target is 1.0.

• Dividend proposal of €0.35 per share (about 37–40% payout ratio).

• Transformation program expected to yield €19 million in annual cost savings by 2027 and €32 million by 2028.