Wacker Neuson (WAC) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue was EUR 2,218.8 million, nearly flat year-over-year, with Q4 revenue up 15.8% YoY to EUR 593.6 million and a gradual operational recovery after a weak Q1.

• EBIT reached EUR 132.4 million, up 7.6% year-over-year, with a 6.0% margin, up 0.5 percentage points from 2024, impacted by one-time legal, advisory, and asset impairment costs in Q4.

• Free cash flow increased to EUR 201.6 million, driven by disciplined inventory management and reduced net working capital, which fell to 29.2%.

• Net debt decreased by over 40% to EUR 185 million, with net financial debt/EBITDA at 0.6 and equity ratio improved to 62%.

• A dividend of EUR 0.70 per share is proposed, representing a 61% payout ratio and a 2.9% yield.

Financial highlights

• EBIT margin improved to 6.0% from 5.5% in 2024, with adjusted EBIT margin at 6.5%.

• Free cash flow rose to EUR 201.6 million, exceeding the prior year's EUR 184.6 million.

• Net working capital ratio improved to 29.2% due to inventory reduction and higher trade payables.

• EPS increased 9.6% YoY to EUR 1.14; result for the period was EUR 77.2 million, up 9%.

• Investments in 2025 totaled EUR 66.7 million, down from EUR 102.6 million in 2024.

Outlook and guidance

• 2026 revenue expected between EUR 2.2 billion and EUR 2.4 billion, with EBIT margin guidance of 6.5%-7.5%.

• Moderate market upturn anticipated, with continued focus on operational efficiency and cost management.

• Net working capital ratio target remains below 30%; planned investments for 2026 are EUR 70–90 million.

• Strategy 2030 profitability target of >11% EBIT margin reaffirmed, with revenue ambition for 2030 set at EUR 3.5 billion.

• Order intake and backlog above previous year; EU construction recovery expected, but US tariff policy and geopolitical risks remain.