Wacker Neuson (WAC) Q1 2026 earnings summary

Executive summary

• Revenue grew 19.8% year-over-year to EUR 591.4 million in Q1 2026, driven by strong demand in compact equipment and a recovery in the European construction sector.

• EBIT margin rose to 7.0%, up 4.5 percentage points from Q1 2025, supported by higher revenue and stable operating costs.

• Net profit for the period increased to EUR 28.1 million, with EPS rising to EUR 0.41 from EUR 0.06 year-over-year.

• Free cash flow was slightly negative at EUR -2.6 million, mainly due to investments in working capital.

• Strong balance sheet with equity ratio at 62% and net financial debt at EUR 195.8 million, leverage ratio stable at 0.6x.

Financial highlights

• Gross profit margin increased by 1.7 percentage points year-over-year to 23.6%.

• Revenue in Europe (80% of total) grew 27% to EUR 472 million, with significant demand in key markets.

• Americas revenue reached EUR 108 million, down 2% nominally but up 8% adjusted for currency effects; Asia-Pacific revenue rose 8%, driven by Australia.

• Compact equipment segment revenue grew 40% year-over-year to EUR 356 million, now 60% of group revenue; light equipment flat, services down 3%.

• Net working capital ratio decreased to 30.7%, down from 32.8% in Q1 2025.

Outlook and guidance

• Guidance for FY 2026 confirmed: revenue expected between EUR 2.2–2.4 billion and EBIT margin of 6.5–7.5%.

• Moderate market upturn anticipated, with continued investment of EUR 70–90 million planned for the year.

• Net working capital ratio targeted to remain below 30% by year-end.

• Order intake and order book above previous year, with positive momentum in European construction.

• Business cycle risks remain due to geopolitical and economic uncertainties, including US tariffs and Middle East conflicts.