Fuchs Petrolub SE

FUCHS reported first-half 2026 sales of EUR 2 billion, up 11% year over year, and EBIT of EUR 260 million, up EUR 51 million or 24% year over year. Q2 sales were EUR 1.1 billion, up 21% year over year, and Q2 EBIT was EUR 135 million, up 34% year over year. Gross margin came in at 34.8% versus 35.1% in Q1 and 34.7% a year ago; EBIT margin was 13% versus 11.6% last year. Free cash flow before acquisitions was EUR 61 million versus EUR 81 million last year, mainly due to an inflation-driven buildup in net operating working capital, which rose to EUR 910 million. Full-year 2026 guidance was raised: EBIT is now expected at EUR 460 million to EUR 480 million, sales are still expected to be significantly above EUR 3.7 billion, and free cash flow before acquisitions is still expected to be significantly below EUR 270 million.

Stefan Fuchs framed the period as a strong half year, but repeatedly cautioned investors not to extrapolate it linearly into the rest of the year. He said H1 benefited from temporary factors such as pre-buying and customers switching because competitors could not supply, though some of that business should stick. His tone was confident but careful: he highlighted FUCHS 100, the company’s global network, and its ability to keep serving customers despite a volatile raw-material backdrop and the Saudi plant incident.

Esma Saglik emphasized that the financial performance was driven by strong organic growth, especially volume, with limited price benefit in H1 and negative FX of about EUR 26 million. She pointed to EBIT of EUR 260 million, gross margin of 34.8%, functional costs up EUR 20 million, and free cash flow before acquisitions of EUR 61 million, which was hit by a EUR 139 million increase in net operating working capital. She also said net liquidity fell from EUR 151 million at year-end 2025 to EUR 13 million at June 30 after a EUR 160 million dividend payment and the Turkish acquisition, while CapEx remained in line with full-year guidance.

Analysts focused on the Saudi plant fire, the durability of the Americas and Asia strength, pre-buying, pricing, and whether H1 strength can continue. Management said the Saudi JV is 32% owned, the plant mainly serves Saudi Arabia, rebuild time is likely a year-plus, and the incident should not affect group guidance because alternative sourcing is available and the earnings contribution is limited. On demand, they said July is too early to judge, pre-buying should unwind by year-end, some competitor-displaced volume may remain, and the Q2 net pricing effect was positive despite inflation and raw-material cost pressure.