Vorwerk Group SE reported a modest improvement in first-quarter 2026 sales, posting revenue of €139.2m, a 5% increase compared with the same period a year earlier. Management said unusually severe weather in January and February temporarily halted project execution for several weeks, weighing on near-term activity.
Segment performance was mixed. The Natural Gas business delivered the strongest growth, with revenue rising 18% year-on-year to €36m. Electricity sales increased 6% to €78m. By contrast, Clean Hydrogen revenue declined sharply, falling 42% to €1.8m, and Adjacent Opportunities dropped 10% to €23m.
Profitability improved notably. EBITDA climbed 75% from the prior-year quarter to €31.8m, generating a margin of 22.8% compared with 13.7% in the year-ago period. Vorwerk noted that the quarter's margin sits at the midpoint of its full-year 2026 target range, though it remains below the 28.8% margin recorded in the fourth quarter of 2025. Operating profit (EBIT) rose 89% year-on-year to €24.1m, equivalent to a margin of 17.3%.
On the order front, the group reported an order backlog of €1,441m when including proportionate volumes from joint ventures, representing a 2% increase from the prior quarter. The standalone order backlog stood at €1,074m, down 5% compared with the same period last year.
Cash flow showed improvement, with free cash flow narrowing its negative position to €-28m from €-63m in the prior-year quarter.
Management reiterated its full-year 2026 guidance. Revenue is projected in a range of €730-780m, while EBITDA is forecast at €160-180m. The company characterized the EBITDA guidance as implying year-on-year growth between negative 2% and positive 4%, versus a consensus estimate of €171m. At the midpoint of guidance, the targeted EBITDA margin is 22.5%, compared with a consensus margin of 22.3%.
Key points
- Revenue rose 5% year-on-year to €139.2m in Q1 2026, with Natural Gas and Electricity the primary contributors.
- EBITDA and EBIT improved substantially, to €31.8m and €24.1m respectively, with margins strengthening to 22.8% (EBITDA) and 17.3% (EBIT).
- Management confirmed full-year 2026 guidance: revenue €730-780m and EBITDA €160-180m; midpoint EBITDA margin target is 22.5%.
Risks and uncertainties
- Weather-related disruptions: Severe winter conditions in January and February temporarily stopped project work, highlighting operational sensitivity to adverse weather - a risk for project delivery schedules in energy and infrastructure segments.
- Weakness in Clean Hydrogen revenues: A 42% decline in Clean Hydrogen sales introduces uncertainty around the pace of recovery in that segment and its contribution to longer-term growth.
- Standalone backlog decline: The 5% year-on-year drop in the standalone order backlog could signal reduced near-term organic demand, affecting project pipeline visibility for the energy and utilities-related businesses.
Vorwerk's first-quarter results show improved profitability amid mixed top-line dynamics across its businesses. Management's decision to maintain full-year guidance suggests confidence in execution, but near-term weather exposure and softness in the Clean Hydrogen segment remain factors to monitor.