This article first appeared on GuruFocus .
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Revenue:EUR479 million in Q2 2026, a 17% year-over-year increase from EUR408 million.
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Organic Growth:Contributed EUR86.9 million, driven by e-mobility ramp-up including a EUR28 million one-time effect.
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Adjusted EBITDA:EUR54 million, up 7% year-over-year, with a margin of 11.2%.
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Adjusted EBIT:EUR29 million, up 19% year-over-year, with a margin of 6%.
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Adjusted Net Income:EUR11.3 million, up 50% year-over-year.
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Adjusted Earnings Per Share:EUR0.18, up 50% year-over-year.
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E-Mobility Sales:EUR85 million in Q2 2026, more than doubling from EUR40 million in Q2 2025.
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OE Segment Sales:EUR340 million, accounting for 71% of total group revenue.
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Aftermarket Segment Sales:EUR102 million, up roughly 7% year-over-year.
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Engineered Plastics Sales:EUR37 million, up from EUR36 million in Q2 2025.
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Adjusted EBIT Margin (OE Segment, excluding e-mobility):Improved from 4.5% to 4.8%.
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Adjusted EBIT (E-Mobility):Minus EUR8.1 million, an improvement of over EUR1 million year-over-year.
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R&D Ratio:Decreased to 4.2% in Q2, with absolute spending down to around EUR20 million.
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Net Working Capital:EUR347 million, with a ratio of 20%.
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Capital Expenditure:EUR23.9 million in Q2, down 9% year-over-year, with a CapEx ratio of 5%.
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Operating Free Cash Flow:EUR52 million, up 118% from EUR24 million in Q2 2025.
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Net Financial Debt:EUR374 million, with an adjusted net debt-to-EBITDA ratio of 1.9.
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Group Equity:EUR693 million by end of Q2 2026.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ElringKlinger AG ( EGKLF ) reported a 17% year-over-year revenue increase to EUR479 million in Q2 2026, significantly outpacing the declining global automotive market.
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E-mobility sales more than doubled year-over-year to EUR85 million in Q2 2026, now accounting for 18% of total group sales, with a clear path to double 2025 sales by 2028.
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Adjusted EBIT rose 19% year-over-year to EUR29 million, driven by EUR12 million in operational improvements and disciplined cost management.
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Operating free cash flow surged 118% year-over-year to EUR52 million, with a strong 10.8% ratio, reflecting improved working capital management.
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The aftermarket segment continued its strong performance, with sales up 7% to EUR102 million and a robust adjusted EBIT margin of 19.8%.
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The Shape 30 strategy is on track, with over half of the Shape to Empower work streams completed, supporting long-term efficiency and profitability goals.
Negative Points
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Global light vehicle production is forecast to decline by 2.1% in 2026, with Greater China expected to see a 4.6% reduction, intensifying market headwinds.
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E-mobility remains in a ramp-up phase, posting an adjusted EBIT loss of EUR8.1 million in Q2 2026, though improved from the prior year.
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The OE segment excluding e-mobility saw its adjusted EBIT margin decline quarter-over-quarter to 4.8%, attributed to an unfavorable product mix.
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The company faces ongoing challenges from geopolitical tensions, trade conflicts, and inflationary pressures, creating uncertainty across global markets.
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CFO Isabelle Damen will leave the company at the end of 2026, potentially creating leadership transition risks during a critical transformation phase.
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Revenue growth was partly boosted by a EUR28 million one-time effect from tooling/equipment sales, which had zero to low margin, masking underlying organic growth quality.
Q & A Highlights
Q: Can you provide details on the EUR28.1 million one-time effect in revenues and its impact on EBIT? Additionally, will Zono Motors' insolvency affect your figures? A: CFO Isabelle Damen explained that the one-time effect is related to tooling or equipment sales to a customer, which typically carry zero to low margins, so it impacts the revenue line but has little to no effect on EBIT. CEO Thomas Jessulat confirmed that no further impact is expected from Zono Motors' insolvency.
Q: Is it correct that the EUR28.1 million is booked in revenues with a similar amount of expenses, resulting in no effect on the EBIT line? A: CFO Isabelle Damen confirmed this conclusion is correct.
Q: Why did the OE business excluding e-mobility margin decline quarter-over-quarter from 5.2% in Q1 to 4.6%-4.8% in Q2, despite strong business uptick in Europe? A: CFO Isabelle Damen attributed the decline to an unfavorable product mix effect across several product groups, which drove the decrease in margin.
Q: Can you elaborate on the e-mobility business performance and its contribution to overall sales growth? A: CEO Thomas Jessulat highlighted that e-mobility sales doubled from EUR40 million in Q2 2025 to EUR85 million in Q2 2026, accounting for 18% of total group sales. This growth supports the ambition to double fiscal year 2025 sales by 2028, despite the segment still being in a ramp-up phase with an adjusted EBIT of minus EUR8.1 million.
Q: What is the current status of the Shape 30 strategy and the Shape to Empower reorganization program? A: CEO Thomas Jessulat reported that Shape 30 remains on track, targeting around EUR50 million in cost savings and ramp-up contributions with full effect in 2027. More than half of the work streams in the Shape to Empower program have been completed, with the target organization implemented in those areas, improving transparency, accountability, and efficiency.
Q: How did the company perform financially in Q2 2026 despite challenging market conditions? A: CFO Isabelle Damen reported revenue of EUR479 million, a 17% year-on-year increase, with adjusted EBITDA up 7% to EUR54 million and adjusted EBIT up 19% to EUR29 million. Adjusted net income rose 50% to EUR11.3 million, and operating free cash flow improved 118% to EUR52 million, reflecting strong cash conversion.
Q: What is the outlook for global light vehicle production in 2026, and how does it affect ElringKlinger's guidance? A: CEO Thomas Jessulat noted that global light vehicle production is forecast to contract by 2.1% in 2026, with declines across all major regions, including a 4.6% reduction in Greater China. Despite this, the company confirms its full-year 2026 guidance, viewing the current market weakness as a temporary cycle with growth expected to return by 2030.
Q: Can you provide details on the segment performance, particularly the aftermarket and engineered plastics segments? A: CFO Isabelle Damen highlighted that the aftermarket segment increased sales by 7% to EUR102 million with a strong adjusted EBIT margin of 19.8%. The engineered plastics segment grew slightly to EUR37 million with an adjusted EBIT margin of 11.4%, demonstrating resilience in a challenging environment.
Q: How did the company manage its working capital and capital expenditure in Q2 2026? A: CFO Isabelle Damen reported net working capital of EUR347 million, with a ratio of 20%, reflecting improved capital efficiency. Capital expenditure declined 9% to EUR23.9 million, with a CapEx ratio of 5% of sales, within the targeted range of 4% to 6% for the full year.
Q: What were the key drivers behind the adjusted EBIT improvement in Q2 2026? A: CFO Isabelle Damen explained that the EUR4.7 million year-over-year increase in adjusted EBIT was driven by EUR12 million from operational improvement measures, supported by higher volumes and tariff effects, which more than offset ramp-up costs and unfavorable product mix effects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
