Fuchs confirmed its preliminary results for the second quarter of fiscal 2026 on Friday, reporting robust top-line growth alongside mixed cash-flow dynamics. Reported sales increased 21.5% year on year to €1,069 million, while organic sales rose 18.1% for the period.
Operating profit expanded notably. EBIT climbed 33.7% to €135 million, producing an EBIT margin of 12.6% compared with 11.5% in the same quarter a year earlier.
The company pointed to volume-driven expansion as the primary driver of the sales increase. Management cited several contributing factors: pre-buying activity tied to the conflict in the Middle East, limited delivery capacity among certain competitors and continued organic growth. All three reporting regions delivered volume gains and reported market share increases.
Regional sales breakdowns show divergent momentum but universally positive volume trends. In EMEA, reported sales rose 17.8% and organic sales were up 12.6%, reaching €609 million. Asia-Pacific delivered reported growth of 24.4% and organic growth of 21.5% to €301 million. North and South America recorded reported sales growth of 22.2% and organic growth of 24.6%, totaling €204 million.
Profitability shifts varied by region. North and South America saw the strongest margin improvement, with an EBIT margin increase of 779 basis points driven by operating leverage from higher volumes; the region had been affected in the prior year by lower volumes tied to tariff discussions. Asia-Pacific also posted an improved EBIT margin, up 214 basis points, likewise benefiting from operating leverage on volumes. By contrast, the EMEA EBIT margin declined by 85 basis points.
Cash generation weakened versus the prior-year quarter. Free cash flow before acquisitions was €7 million in Q2 2026, down from €64 million in Q2 2025, a deterioration the company attributed to working capital changes. Net liquidity decreased to €13 million versus €151 million at the end of fiscal 2025.
Fuchs reiterated its fiscal 2026 guidance, which was raised on July 22. The company is forecasting sales comfortably above €3.7 billion and anticipates full-year EBIT in a range of €460 million to €480 million. The guidance implies roughly €210 million of EBIT for the second half of the year, materially below first-half earnings due to the earlier pre-buying effects that bolstered first-half results and the impact of rising raw material prices on margins.
Key points
- Reported sales grew 21.5% year on year to €1,069 million; organic sales rose 18.1%.
- EBIT increased 33.7% to €135 million, with a margin of 12.6% versus 11.5% a year earlier.
- Management confirmed fiscal 2026 guidance: sales significantly above €3.7 billion and EBIT of €460 million to €480 million.
Summary of regional performance
- EMEA: €609 million in sales, up 17.8% reported and 12.6% organically; EBIT margin down 85 basis points.
- Asia-Pacific: €301 million in sales, up 24.4% reported and 21.5% organically; EBIT margin up 214 basis points.
- North and South America: €204 million in sales, up 22.2% reported and 24.6% organically; EBIT margin up 779 basis points.
Risks and uncertainties
- Working capital swings weighed heavily on free cash flow, reducing free cash flow before acquisitions from €64 million to €7 million year on year - a factor that could affect liquidity-sensitive operations.
- Rising raw material prices were cited as a pressure on margins and contributed to guidance that expects lower second-half EBIT versus the first half.
- Pre-buying behaviour related to geopolitical tensions had strengthened first-half results and creates a risk that some demand may shift between reporting periods, influencing second-half comparability.
This report focuses on the company-issued results and guidance. Where the company identified causes for changes in volumes, margins and cash flow, those explanations are reflected above. No additional forecasts or assumptions beyond company disclosures are included.