Wacker Neuson SE (WBO:WAC) (H1 2026) Earnings Call Highlights: Revenue Surges 17% and EBIT ...

Q & A Highlights

Q: How is the John Deere cooperation ramp-up progressing in the U.S., and what volume contribution is expected in the second half versus the first half? A: Karl Tragl (CEO) stated that the first two models for John Deere are already in production in Linz, Austria, and are delivering revenue this year. However, there is no major revenue impact in the U.S. from the cooperation in 2026. The biggest machine is currently being introduced, with production for the second machine starting next quarter. These two machines are the volume drivers for the cooperation and will begin generating significant revenue next year, with everything progressing as planned.

Q: Can you explain the factors behind the EBIT margin development expected in the second half of 2026? A: Karl Tragl (CEO) explained that the second half typically includes a weak August with plant closures, which negatively impacts profitability. Additionally, the company anticipates increased transportation and energy costs, as well as pressure on the supply chain, which could raise input costs on the materials side. These factors are baked into the cautious outlook for the second half.

Q: How confident is the company in passing on higher logistics costs to customers through pricing? A: Karl Tragl (CEO) clarified the company's pricing strategy, noting that they have already made progress on pricing in 2026, particularly in North America, where they reacted to tariffs. They have also increased pricing in Europe and for spare parts in mid-2026 to compensate for potential future negative effects on the material side. The final balance depends on many factors, but this is their current approach to mitigating cost pressures.

Q: What was the reason for the small allowance taken in the Asia-Pacific region? A: Christoph Burkhard (CFO) explained that the allowance was related to a dealer in Australia who went into insolvency, leading to a write-off of a receivable. The dealer had taken on too much inventory during 2024 and 2025, and the correction was necessary given the currently depressed Australian market.

Q: What were the key drivers behind the strong revenue growth and profitability improvement in the first half of 2026? A: Karl Tragl (CEO) highlighted that group revenue reached EUR1.26 billion, up 17% year-over-year, driven by strong growth in both Europe and the Americas. EBIT nearly doubled to approximately EUR105 million, with an EBIT margin of 8.3%. Key drivers included profitable revenue growth, improved coverage, and disciplined cost management, as operating costs remained essentially flat despite significant revenue growth, realizing scale effects.

Q: How did the different business segments perform in the first half of 2026? A: Karl Tragl (CEO) reported that the Compact Equipment segment was the strongest growth driver, with revenue up 26% to EUR743 million, driven by strong demand for excavators and dumpers in Europe. Light Equipment revenue increased by 9% to EUR260 million, supported by North American demand for light towers and generators, particularly for AI data center construction. Services revenue grew by 3% to EUR263 million, recovering in the second quarter with stronger demand for spare parts and maintenance.

Q: What is the company's outlook for the full year 2026, and why was the guidance raised only moderately? A: Karl Tragl (CEO) stated that the company raised its full-year revenue guidance to a range of EUR2.3 billion to EUR2.4 billion and its EBIT margin guidance to 7.0% to 8.0%. The moderate raise reflects cautious optimism for the second half, as order momentum weakened during the second quarter and geopolitical and macroeconomic risks remain, including the Middle East war and U.S. tariff policies.

Q: How did the company's working capital and cash flow performance develop in the first half of 2026? A: Christoph Burkhard (CFO) highlighted that the net working capital ratio improved to 28.7%, down 4.1 percentage points year-over-year, despite revenue growth. This was achieved through improved end-to-end S&OP processes. Free cash flow increased to EUR76 million in H1, with a strong Q2 of EUR78 million. Net financial debt decreased by 42% to EUR173 million, resulting in a leverage of 0.5, the lowest since Q1 2022.

Q: What were the regional revenue trends in the first half of 2026? A: Karl Tragl (CEO) noted that Europe remained the largest region with significant revenue growth, driven by recovery in core markets like France, the UK, and the DACH region. The Americas also saw strong growth, particularly in the U.S., Canada, and parts of Latin America. Asia-Pacific was the exception, with revenue declining slightly due to weak demand.

Q: What is the expected capital investment volume for the full year 2026? A: Karl Tragl (CEO) confirmed that the company expects a higher capital investment volume in the second half of the year, maintaining the full-year guidance of EUR70 million to EUR90 million. Additionally, the net working capital ratio is expected to remain below the strategic target of 30%.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .