Wacker Neuson SE

In H1 2026, Wacker Neuson reported revenue of EUR 1.26 billion, up 17% year over year, with Q2 revenue of EUR 665 million after Q1 revenue of EUR 591 million. EBIT in the first half nearly doubled to approximately EUR 105 million, and the H1 EBIT margin improved to 8.3%; Q2 EBIT margin was 9.5%. Free cash flow was EUR 76 million in H1 versus EUR 68 million in H1 2025, and net financial debt at June 30 was EUR 173 million, down 42% year over year with leverage of 0.5. For 2026, management raised guidance to EUR 2.3 billion-EUR 2.4 billion revenue, a 7.0%-8.0% EBIT margin, and EUR 70 million-EUR 90 million of capital investment, while expecting net working capital ratio to stay below 30% and free cash flow to end the year at a triple-digit level.

CEO Karl Tragl said the first half showed clear operational improvement and better profitability, driven by profitable revenue growth, improved coverage, and strict cost discipline. He emphasized that Strategy 2030 remains the company’s guidepost, with a focus on profitable growth, cost efficiency, capital discipline, and customer productivity. At the same time, he said the company is only cautiously optimistic for the second half because order momentum softened in Q2 and geopolitical and macro risks remain.

CFO Christoph Burkhard highlighted working capital improvement, with net working capital ratio at 28.7%, down 4.1 percentage points versus the prior year, despite higher revenue. Inventories peaked at EUR 647 million in Q1 and fell by EUR 44 million by the end of Q2, reflecting better end-to-end S&OP execution. He said Q2 free cash flow was EUR 78 million and reiterated expectations for a triple-digit full-year free cash flow number, while net financial debt fell to EUR 173 million and leverage to 0.5, the lowest since Q1 2022. On pricing, he said the company increased pricing in mid-2026, especially in Europe and spare parts, to offset possible material-cost pressure and tariff effects.

Analysts asked about the U.S. John Deere ramp, second-half margin drivers, possible input cost and logistics pressure, and a small allowance in Asia. Management said the Asia allowance related to a dealer insolvency in Australia and that the market there is generally depressed. On margins, management pointed to usual seasonal weakness in August and mid-December plant closures, plus higher transportation, energy, and supply-chain costs in H2. On John Deere, management said the first two models are already in production in Linz and that the biggest U.S. volume drivers will start contributing more meaningfully next year, so there is no major 2026 revenue impact from the U.S. ramp yet.