Schaeffler shares tumble 19% as weak 2026 outlook trails forecasts
#Schaeffler #Automotive Industry #Market Outlook #Stock Performance #Revenue Guidance #Operating Margin #Diversification Strategy #2026 Forecasts
📌 Key Takeaways
- Schaeffler shares plummeted 19% after releasing weak 2026 outlook
- 2026 revenue guidance of €22.5-24.5 billion fell below market expectations
- Expected operating margin of 3.5-5.5% was below consensus forecasts
- Schaeffler remains committed to achieving medium-term targets despite negative outlook
- Company plans to diversify into robotics and defense by 2035
📖 Full Retelling
German automotive and machine parts supplier Schaeffler issued a cautious 2026 outlook on Tuesday, warning of challenging global auto production conditions that sent its shares plummeting approximately 19% and put the stock on track for its steepest daily decline since March 2020, as the company's revenue and margin forecasts fell below market expectations. Schaeffler guided for 2026 revenue of €22.5 billion to €24.5 billion, which was below the €24.03 billion consensus estimate. The company expects an adjusted operating margin of 3.5% to 5.5%, compared with market expectations of 5.1%. Jefferies analysts led by Vanessa Jeffriess commented that the 'FY26 guidance is weak,' implying sales around 2% below consensus at the midpoint and EBIT roughly 14% below expectations. Despite the softer outlook, Schaeffler affirmed it remains on track to achieve its medium-term targets. For 2025, the group reported revenue of €23.5 billion, down from €24.3 billion, reflecting a 7.8% decline in its Powertrain & Chassis division. Looking longer term, Schaeffler outlined its strategic direction by 2035, aiming to generate up to 10% of revenue 'from new, high-potential activities such as the areas of humanoid robotics and defense.' This suggests the company is seeking diversification beyond traditional automotive components to mitigate risks associated with the challenging automotive market environment.
🏷️ Themes
Corporate Performance, Automotive Industry, Market Expectations
📚 Related People & Topics
Automotive industry
Organizations involved with motor vehicles
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. It is one of the world's largest industries by revenue with global automotive market at ~$2.75 trillion...
Schaeffler Group
German bearings manufacturer
Schaeffler Technologies AG & Co. KG, also known as the Schaeffler Group (Schaeffler-Gruppe in German), is a German manufacturer of rolling element bearings for automotive, aerospace and industrial uses, including the FAG brand. It was founded in 1946 by brothers Dr.
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil extends surge on concerns surrounding Strait of Hormuz closure Futures drop, oil prices climb amid Iran conflict - what’s moving markets Gold dips, reverses course as stronger dollar weighs amid Iran conflict Gold price surge after Iran attack could fade, Pepperstone says FLASH SALE (South Africa Philippines Nigeria) FLASH SALE Schaeffler shares tumble 19% as weak 2026 outlook trails forecasts By Vahid Karaahmetovic Author Vahid Karaahmetovic Earnings Published 03/03/2026, 03:58 AM Schaeffler shares tumble 19% as weak 2026 outlook trails forecasts 0 SHA0n -16.72% Investing.com -- Schaeffler issued a cautious outlook for 2026 on Tuesday, warning of a difficult global auto production backdrop, sending its shares down about 19% and putting the stock on course for its steepest daily drop since March 2020. The German automotive and machine parts supplier guided for 2026 revenue of €22.5 billion to €24.5 billion, below the €24.03 billion consensus estimate. It expects an adjusted operating margin of 3.5% to 5.5%, compared with market expectations of 5.1%. Jefferies analysts led by Vanessa Jeffriess said the "FY26 guidance is weak," implying sales around 2% below consensus at the midpoint and EBIT roughly 14% below expectations. Get key analyst insight into corporate results with InvestingPro Despite the softer-than-expected outlook, Schaeffler said it remains on track to achieve its medium-term targets. For 2025, the group reported revenue of €23.5 billion, down from €24.3 billion, reflecting a 7.8% decline in its Powertrain & Chassis division. The figure was broadly in line with the €23.6 billion consensus. EBIT before special items rose 11.1% year on year to €936 million but fell short of the €982 million consensus forecast. Free cash flow came in at €266 million, also missing expectations of €189 million. Looking longer term, Schaeffler said that by 2035 it aims to generate up to 10% of revenue “from new, hi...
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