Schaeffler beats Q1 profit expectations aided by diversified model
Q1 Financial Performance and Business Overview
May 5 (Reuters) - German machine and car parts maker Schaeffler reported a higher-than-expected first-quarter operating profit on Tuesday, as its diversified business model helped offset troubling market trends.
Profit and Margin Results
The company said its adjusted earnings before interest and tax rose to 285 million euros ($333 million) in the quarter, beating the 279 million euros expected by analysts in a company-provided consensus. The corresponding margin of 5% was also slightly ahead of the 4.9% forecast.
Market Reaction
Its shares were up 2.7% at 0625 GMT in early Frankfurt trade.
Management Commentary
"The Schaeffler Group is off to a good start in 2026, despite a persistently difficult political and economic environment," CEO Klaus Rosenfeld said in a statement.
Revenue Drivers
E-Mobility Division Performance
Revenue was driven by the company's E-Mobility division, which supplies components and drive systems for electrified powertrains, where sales rose 6% from last year on a constant currency basis, supported by increased sales in its Europe and Asia-Pacific business regions.
Outlook and Industry Challenges
Conservative Forecast
Schaeffler confirmed its conservative outlook for 2026, as visibility across the auto industry remains clouded by wider macroeconomic uncertainty.
Sector Headwinds
The sector is grappling with U.S. tariffs, higher energy and commodity costs linked to the Iran war, and unfavourable moves in currency exchange rates.
($1 = 0.8560 euros)
(Reporting by Amir Orusov and Emanuele Berro in Gdansk, editing by Milla Nissi-Prussak)
