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% versus last year. Q2 sales were EUR 1.1 billion, up 21% year over year and 14% versus Q1, while Q2 EBIT reached 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% in the prior-year period; EBIT margin was 13% versus 11.6% last year. Free cash flow before acquisitions was EUR 61 million, below EUR 81 million a year ago, and net liquidity fell from EUR 151 million at year-end 2025 to EUR 13 million at end-June, mainly because net operating working capital rose to EUR 910 million. For 2026, management now expects EBIT of EUR 460 million to 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 show a moderate improvement above the prior year.

Stefan Fuchs struck an upbeat but cautious tone, saying the company has a strong position because of its global footprint, broad sourcing network, and ability to serve customers through supply disruption. He emphasized that part of the first-half volume strength came from temporary pre-buying and from customers switching because other suppliers could not deliver, so he warned not to extrapolate the first half or the second quarter into the rest of the year. He also framed FUCHS 100 around growth, people, and sustainability, and said the company is well positioned but still operating in a very dynamic market.

Esma Saglik highlighted a very strong first half, with sales of EUR 2 billion, EBIT of EUR 260 million, gross margin at 34.8%, and EBIT margin at 13%. She explained that free cash flow before acquisitions of EUR 61 million was held back by an inflation-driven buildup in net operating working capital to EUR 910 million, while net liquidity declined to EUR 13 million after a EUR 160 million dividend payment and the Turkey acquisition. She also said CapEx increased year over year but remained in line with full-year guidance, and she confirmed that the Saudi fire is not expected to change the guidance because FUCHS is a minority owner and can source alternatives.

Analysts focused on the Saudi plant fire, the sustainability of Americas’ strong EBIT, and how much of the first-half volume surge was temporary. Management said the Saudi site is largely damaged, output is not expected for the rest of the year, rebuilding will take a year plus, but the direct group-level earnings impact should be limited and the guidance remains intact. On demand, management said visibility is limited, July is too early to judge, pre-buying should unwind by year-end, and some competitor-share gains may stick but not all of them; they also said current raw material sourcing is tight but manageable through long-term relationships and a broad supplier base.