Wacker Neuson (WAC) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue declined 10.8% year-over-year to €1,074.9m, but sequential improvements in Q2 led to higher EBIT margin and positive free cash flow.

• EBIT margin for H1 2025 was 5.2%, with Q2 improving to 7.6% from a weak Q1, though still below prior year.

• Free cash flow improved significantly to €67.7m in H1 2025, up from €4.5m in H1 2024, driven by higher operating cash flow.

• Strategy 2030 and the 2025 action plan are being executed with discipline, including a new partnership with John Deere to strengthen the North American market.

• Order backlog and book-to-bill ratio above 1 in H1 2025 indicate continued order momentum, despite recent months seeing a ratio of 0.9x.

Financial highlights

• H1 2025 revenue was €1,074.9m, with Q1 at €494m and Q2 at €581.4m, down 10.8% year-over-year.

• EBIT for H1 2025 was €56.1m, a 33.1% decrease year-over-year; EBIT margin was 5.2%.

• EPS for H1 2025 was €0.42, down 47.5% year-over-year.

• Gross profit margin for H1 2025 was 23.3%, slightly below prior year.

• Net financial debt stood at €299.2m at June 30, 2025, with leverage ratio at 1.1x.

Outlook and guidance

• Full-year 2025 revenue guidance is €2,100m–€2,300m, with EBIT margin expected between 6.5% and 7.5%.

• Net working capital ratio targeted at approximately 30% by year-end; investments planned at around €100m.

• H2 2025 revenue and EBIT margin expected to improve, driven by higher service share and cost measures.

• Management expects a balanced H2 performance, not heavily backend loaded.

• US tariffs and geopolitical uncertainties remain key risks to recovery.