This article first appeared on GuruFocus .
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Revenue (H1 2026):Record level of $248 million, an increase of 6.6% year-over-year.
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Revenue (Q2 2026):New quarterly record of $137 million, up 10.4% year-over-year.
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EBIT (H1 2026):$17.7 million, essentially on par with the prior year's $17.6 million.
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EBIT Margin (H1 2026):7.1%, down from 7.6% in the prior year.
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EBIT (Q2 2026):Increased by 9.4% to $13.9 million, with an EBIT margin of 10.2%.
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Free Cash Flow (H1 2026):$40 million, a decrease of $6 million versus the prior year.
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Free Cash Flow (Q2 2026):$6.7 million, up by 90% year-over-year.
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Equipment Revenue (H1 2026):Increased by 13.4% to $128 million; in Q2 alone, grew 18.7%.
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Service Revenue (H1 2026):Increased by 3.2% to $81 million; Q2 revenue grew 5.7%.
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Consumables Revenue (H1 2026):$36 million, a decrease of 5% compared to the prior year.
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Europe & Other Segment Revenue (H1 2026):Increased to EUR230 million, up 4.9%; EBIT margin declined by 150 basis points to 7.9%.
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North America Segment Revenue (H1 2026):Increased by 18.1% to $37 million; Q2 revenue grew 23.4%.
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North America Segment EBIT (H1 2026):Improved from a loss of $1.5 million to a profit of $0.8 million, with an EBIT margin improvement of 700 basis points.
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Net Income (H1 2026):EUR11.3 million, on par with the prior year.
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Earnings Per Share (H1 2026):Increased by EUR1 to EUR85.
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Net Financial Debt:Increased due to higher net operating working capital, financed mainly by bank loans.
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Equity Ratio:Declined by 2.8% to 20%.
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Order Backlog:9% above the 2022 level, 13% above the end of 2025, and 2% above the end of Q2 2025.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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WashTec AG ( WBO:WSU ) achieved a record revenue of $248 million in H1 2026, a 6.6% increase year-over-year, driven by strong equipment sales.
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The SmartCare Connect rollout is a major success, with 54% of rollover revenues coming from the new product in Q2 2026 and the 1,500th machine produced.
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North America showed exceptional performance, with revenue up 18.1% in H1 and a significant EBIT margin improvement of 700 basis points, turning profitable.
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The company has a strong order backlog, 13% above the end of 2025, providing good visibility for future top-line growth.
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Q2 2026 showed a clear improvement over Q1, with revenue up 10.4% and free cash flow up 90% year-over-year, indicating positive momentum.
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The production footprint optimization in the Czech Republic is progressing well, with the logistics section fully active and expected to deliver annual savings of around EUR3 million.
Negative Points
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Group EBIT margin declined to 7.1% in H1 2026 from 7.6% in the prior year, reflecting ongoing efficiency program costs and product mix pressure.
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Consumables revenue decreased by 5% in H1 due to weather-related lower wash volumes, despite an increase in the customer base.
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The Europe and other segment's EBIT margin declined by 150 basis points to 7.9%, impacted by implementation delays and additional project costs.
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Free cash flow decreased by $6 million in H1 due to higher trade receivables from strong Q2 revenue growth, increasing net financial debt.
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The company faces ongoing headwinds from higher IT-related spending (e.g., S/4HANA) and installation costs, which are still burdening the P&L by a low single-digit million euro amount.
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The equity ratio declined by 2.8% to 20% due to dividend payments and the share buyback program.
Q & A Highlights
Q: Can you quantify how adjusted EBIT margin in Q1 or H1 would have been without the ongoing one-off efficiency costs? A: Andreas Pabst (CFO) stated that while the company does not provide detailed numbers on every project, the one-off efficiency costs amount to a lower single-digit million euro figure, specifically around EUR2 million to EUR3 million for H1 2026.
Q: You confirmed your full year EBIT guidance despite flattish H1 EBIT. What are the drivers that would let you achieve your targets, which imply a high single-digit, double-digit EBIT growth in H2? A: Andreas Pabst (CFO) cited multiple reasons for confidence in the guidance: a strong order backlog, excellent market reception of new products, the step-by-step kick-in of efficiency programs, and cost-cutting measures implemented in Q2, including restrictive hiring and increased cost sensitivity across the organization.
Q: North America had nice sales development in H1, but still low profitability. What is the short-term and midterm outlook for profitability? When will you get a decent high single-digit margin here? A: Andreas Pabst (CFO) acknowledged the current 2.2% EBIT margin in North America is not satisfactory but represents a significant improvement over the prior year's loss. The company aims to improve profitability every year, targeting an 8% to 9% EBIT margin in North America within the midterm, approximately three years.
Q: The SmartCare share of installations has gone up quickly. Should there not be an underlying positive trend in consumables and service business sales? When do we start to see growth in the consumables business? A: Andreas Pabst (CFO) explained that the boost in consumables sales will come not only from SmartCare Connect but also from the new global scope configurator, which empowers sales reps to sell machines alongside consumable long-term contracts. While wash counts are down year-over-year, the number of consumables customers has increased, giving a positive outlook for H2.
Q: What should the P&L EBIT benefit of your optimization of the manufacturing footprint look like in the coming years in 2026 to 2028? A: Andreas Pabst (CFO) detailed that shifting 85 workplaces from Augsburg to the Czech Republic yields savings of approximately EUR30,000 to EUR35,000 per workplace annually, totaling roughly EUR3 million. This is partially offset by additional costs from operating three plants, but process optimization benefits should lead to a net positive impact.
Q: What slows the order book growth in Europe? Do you expect a rebound in investments in H2? Can you quantify the tax reimbursement in Q2? A: Andreas Pabst (CFO) noted that while the overall order backlog is higher than a year ago, Europe is slightly lower due to timing of major customer orders, which is not a concern. The tax reimbursement relates to dividend payments and is a standard process, not a significant one-off item.
Q: Regarding the one-off costs, is the low single-digit number for Q2 or H1 2026? A: Andreas Pabst (CFO) clarified that the low single-digit million euro amount of one-off efficiency costs pertains to the entire first half of 2026 (H1), not just Q2.
Q: You mentioned the number of consumables customers increases. Would you be willing to share by how much, and do we see this on both the tunnel and rollover sides? A: Andreas Pabst (CFO) declined to provide specific customer numbers but confirmed a low single-digit percentage increase in the customer base. He noted a designated task force is approaching tunnel customers specifically, as they consume more consumables, while also targeting third-party machines and all rollover customers in the portfolio.
Q: Is the modularization and scope in supply with the SmartCare ramp-up materializing as expected? A: Andreas Pabst (CFO) stated that good progress is being made on the modularization program. While some milestones are fully on plan, others are slightly delayed, but nothing significant, and overall the company is pleased with the program's progress.
Q: Do you expect a rebound in inventory in H2? A: Andreas Pabst (CFO) explained that the company increased safety stock by EUR3 million to EUR5 million in H1 due to the Gulf region conflict, buying parts where shortages or price increases were anticipated. This is a temporary measure, and the inventory level will be reduced again depending on how the conflict evolves.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
