Schaeffler's Humanoid Robotics Strategy Outshines Auto Industry Struggles

Schaeffler's Shift Towards Humanoid Robotics

By Danilo Masoni

Partnerships and Market Position

MILAN, Feb 12 (Reuters) - Schaeffler has emerged as a rare humanoid-robotics play in European stock markets, shifting the narrative around this high-precision auto parts supplier and helping its shares decouple from the turmoil gripping the sector.

Investor Sentiment and Stock Performance

Schaeffler, which employs 110,000 people, announced a partnership last month to supply components to UK tech company Humanoid and said it would integrate several hundred humanoids into its production network over the next five years. In November, it partnered with Neura Robotics.

Challenges and Future Projections

Humanoids, viewed as the physical frontier of artificial intelligence, still make up less than 1% of the German company's sales, yet its shares have already rallied strongly.

Over the past year, an index for European autos and auto suppliers has lost 11%, most recently hit by Stellantis' hefty EV-related writedown, but Schaeffler has surged around 150% in that time, reaching a market cap of over 10 billion euros ($12 billion). 

The outperformance reflects early bets by investors on how this new business stream could reshape a family-controlled company that is still largely tied to an auto industry exposed to U.S. tariffs, weak demand and Chinese competition.

Schaeffler's CEO Klaus Rosenfeld aims to generate up to 10% of sales by 2035 - over 3 billion euros - from sectors including humanoid robotics, defence, and electric vertical take-off. In 2024, revenues were 24.3 billion euros.  

Lemanik fund manager Andrea Scauri said Schaeffler's jump has more to do with excitement around robotics-themed investing than with its auto business, which he still sees as "weak". 

"There are no pure-play humanoid robotics companies listed, so investors are buying stocks like Schaeffler largely ignoring the underlying business. These are potentially very attractive bets, but still highly speculative," he said.

EUROPE PLAYS NICHE ROLE IN HUMANOID RACE

Although the humanoid race is led by the U.S. and China, Europe is carving out a niche role as industrial and component supplier, with companies such as Siemens, SKF and Renishaw also seen as well positioned.

In the auto sector, Tesla is pushing ahead with development of its in-house Optimus humanoid robot, while Asian carmakers such as Xpeng and Hyundai are building their own robots to pilot them on factory floors.

Several investment banks have raised their price targets on Schaeffler stock since January, with Bank of America setting the highest at 13 euros, about 21% above Wednesday's closing price.

UBS, however, last week downgraded Schaeffler, becoming the only broker with a sell rating. 

"While the opportunity is meaningful, current valuations imply around 3  billion euros of humanoid value, significantly above our estimate of 1.6  billion," said UBS analyst Juan Perez-Carrascosa. 

Schaeffler, which reports on March 3, trades at a 94% premium to the broader auto sector, per LSEG data, underscoring investors' willingness to pay up for its humanoid-robot ambitions.

(Reporting by Danilo Masoni; Editing by Amanda Cooper and Philippa Fletcher)