Fuchs Petrolub SE

For H1 2026, sales were EUR 2 billion, up 11% year over year, and EBIT was EUR 260 million, up EUR 51 million or 24% year over year. Q2 sales were EUR 1.1 billion, up 14% versus Q1 and 21% versus Q2 last year; Q2 EBIT was EUR 135 million, up 34% year over year and 8% quarter over quarter. Gross margin was 34.8%, versus 35.1% in Q1 and 34.7% a year ago. Free cash flow before acquisitions was EUR 61 million, below EUR 81 million last year, and net operating working capital increased to EUR 910 million. For 2026, management now expects EBIT of EUR 460 million-EUR 480 million, sales significantly above EUR 3.7 billion, and free cash flow before acquisitions significantly below EUR 270 million; FVA is expected to improve moderately above prior year.

Stefan Fuchs said the business performed strongly across all regions, but cautioned that first-half momentum should not simply be extrapolated because part of the volume growth came from pre-buying and temporary supply-chain disruptions at competitors. He emphasized FUCHS’ broad global sourcing network, customer reliability, and ability to substitute materials and secure supply in a difficult market. His tone was confident but measured, repeatedly stressing that visibility remains limited and that 2026 should be viewed as a full-year story, not just a first-half run rate.

Esma Saglik highlighted that sales growth was mainly organic and volume-driven, with around EUR 200 million or 12% of H1 growth from organic growth, EUR 25 million from external growth, and currency effects of around minus EUR 26 million. She said gross margin stayed solid at 34.8% and that functional costs rose only 5% versus sales up 11%, supporting an EBIT margin of 13% versus 11.6% last year. On cash, she pointed to the EUR 139 million increase in net operating working capital, EUR 160 million of dividends paid in Q2, the Turkey acquisition cash outflow, and net liquidity falling from EUR 151 million at year-end 2025 to EUR 13 million at June-end. She also said CapEx remains in line with full-year guidance.

Analysts focused on the Saudi JV fire, asking whether the guidance upgrade already absorbed the impact and how long rebuilding would take; management said the group owns 32%, the plant mainly serves Saudi Arabia, and rebuilding major parts would take a year plus, but it should not change guidance because customer supply can be covered through alternatives. Questions also centered on how much of the strong H1 demand came from pre-buying versus lasting share gains; management said the pre-buying effect should unwind by year-end, some competitor-share gains will likely remain, but it is too early to quantify. Other questions covered pricing mechanisms, digital transformation timing, and whether the surge in Asia and the Americas was sustainable; management said pricing is broadly similar across regions, the digital program is on track with first go-lives planned for Mexico in March next year and the U.S. in July, and no special pre-buying pattern was evident in Asia.