WashTec AG

WashTec reported H1 2026 revenue of EUR 248 million, up 6.6% year over year, with EBIT of EUR 17.7 million versus EUR 17.6 million a year ago and an EBIT margin of 7.1% versus 7.6%. Q2 revenue reached a quarterly record of EUR 137 million, up 10.4%, while Q2 EBIT rose 9.4% to EUR 13.9 million and the EBIT margin was 10.2% versus 10.3% last year. H1 free cash flow was EUR 14 million, down EUR 6 million year over year, and Q2 free cash flow was EUR 6.7 million, up 90%. Management confirmed 2026 guidance: mid-single-digit revenue growth, EBIT growing faster than revenue, free cash flow of EUR 35 million to EUR 45 million, and ROCE above 2025.

The call was led by CFO Andreas Pabst rather than the CEO, and his strategic emphasis was on two priorities: optimizing the production footprint and scaling SmartCare Connect. He framed the Czech footprint move and related relocations as a major industrial reshaping intended to create long-term profitability, and said SmartCare Connect is already showing strong market acceptance with 54% of Q2 rollover revenue coming from the new equipment. His tone was constructive and confident, but he acknowledged that some projects are late or cost more than planned.

Pabst focused on the financial bridge from H1 to the full-year outlook. He said the margin was held back by product mix, North America still being lower-margin than Europe, and ongoing efficiency programs that are costing a low single-digit million euro amount in 2026, which he quantified in Q&A as roughly EUR 2 million to EUR 3 million for H1. He also pointed to higher trade receivables from strong Q2 sales, slightly higher safety stock of EUR 3 million to EUR 5 million due to geopolitical uncertainty, and about EUR 4 million of H1 investment spending, with slightly higher capex expected in H2.

Analysts pressed management on the one-off efficiency costs, the weak consumables trend, European order intake, inventory, and the North America margin outlook. Pabst said the efficiency-related burden is a low single-digit million euro amount for H1, consumables should improve as the installed base and customer count expand, and Europe’s order backlog is only slightly below last year and not a concern. He also said North America’s EBIT margin of 2.2% is still unsatisfactory, but the midterm target is 8% to 9% in about three years.