Fuchs Petrolub SE

FUCHS said H1 2026 sales were EUR 2 billion, up 11% year over year, and EBIT was EUR 260 million, up EUR 51 million or 24% versus last 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 was 34.8%, compared with 34.7% in the prior-year period and 35.1% in Q1; EBIT margin was 13% versus 11.6% last year. Free cash flow before acquisitions was EUR 61 million, down from EUR 81 million, and net operating working capital rose to EUR 910 million. For 2026, EBIT guidance was increased to EUR 460 million-EUR 480 million from around EUR 450 million previously; 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 emphasized that the group’s broad global footprint, sourcing network, and customer relationships helped it perform well in a difficult market. He framed the first half as strong but said it should not be extrapolated, because part of the volume strength came from pre-buying and from customers switching due to competitor supply shortages. He was upbeat about the organization’s execution, but repeatedly stressed that visibility is limited and the second half should be viewed cautiously.

Esma Saglik highlighted a strong H1 performance with sales of EUR 2 billion, EBIT of EUR 260 million, and a free cash flow before acquisitions of EUR 61 million. She explained that cash flow was held back by an inflation-driven buildup in net operating working capital, which increased to EUR 910 million, while CapEx remained in line with full-year guidance. She also noted that the higher EBIT outlook to EUR 460 million-EUR 480 million reflects first-half strength, while sales guidance stays above EUR 3.7 billion and free cash flow guidance stays below EUR 270 million because working capital pressure is likely to persist.

Analysts focused on the Saudi Arabia plant fire, the sustainability of Americas’ strong EBIT, and how much of the first-half volume strength came from pre-buying versus lasting share gains. Management said the Saudi site is a joint venture in which FUCHS owns 32%, large parts of the plant were destroyed, and rebuilding major parts will take a year plus; they do not expect the incident to affect guidance. On demand, management said pre-buying will unwind in H2, some competitor-sourced business will be retained, but the amount is hard to quantify, and they have limited visibility into current-quarter trading.