Schaeffler AG delivered first-quarter 2026 results that showed stronger profitability than analysts had anticipated, while top-line performance was largely in line with market expectations.
Quarterly headline figures
The company reported an EBIT margin of 4.7% for the quarter. That compares with Jefferies’ estimate of 4.1% and a consensus forecast of 4.3%. Reported sales declined year-on-year, but on an organic basis the company recorded slight growth versus the prior year period.
Free cash flow for the quarter reached €155 million, a decrease relative to the prior year. That outturn was markedly stronger than Jefferies’ modeled expectation of negative €267 million.
Schaeffler left its full-year 2026 guidance unchanged, reiterating a sales range of €22.5 billion to €24.5 billion, an EBIT margin target of 3.5% to 5.5%, and a free cash flow forecast of €100 million to €300 million.
Division-level performance
The E-Mobility division expanded organic sales in the mid-single digits, supported by demand in Europe and the Asia-Pacific region despite headwinds in the United States. However, the division remained loss-making: its EBIT margin improved slightly to negative 23.6% from negative 22.9% in the prior year, and it continued to sit below the company’s guidance range of negative 15.0% to negative 13.0%.
Powertrain & Chassis experienced an organic sales decline, which the company attributed to weak markets in Europe and China as well as phase-out business. The division’s EBIT margin eased to 11.8% from 12.4%, positioning it at the upper end of the division’s guidance.
Vehicle Lifetime Solutions posted slight organic sales growth and an EBIT margin of 15.3%, roughly in line with the prior year’s 15.7%.
Bearings & Industrial Solutions reported organic sales growth driven by strength in China, producing an EBIT margin of 10.8%, slightly below the prior year’s 10.1% but at the upper end of the division’s 7% to 9% guidance range.
Context and takeaway
The quarter delivered a mix of positives and ongoing challenges. The company’s consolidated EBIT margin outperformed analyst models, and free cash flow came in substantially better than at least one broker’s projection, while revenue showed only modest organic growth. At the same time, the E-Mobility unit remains loss-making and outside its indicated guidance band, and Powertrain & Chassis is coping with softer markets in key regions and the impact of phase-out activities.
Investors will likely focus on whether margins can be sustained across the portfolio and how the E-Mobility business progresses relative to the company’s guidance over the remainder of 2026.