EQS-News: Q3 2025: ElringKlinger posts solid quarterly results

PRESS RELEASE

Q3 2025: ElringKlinger posts solid quarterly results

• Group revenue at EUR 395.5 million (Q3 2024: EUR 440.8 million) in the third quarter of 2025 against a persistently challenging backdrop; organic revenue growth of 2.2% in the year to date
• Robust profitability: adjusted EBIT margin at 5.4% (Q3 2024: 5.2%), adjusted EBIT at EUR 21.2 million (Q3 2024: EUR 23.0 million)
• Group generates positive operating free cash flow of EUR 18.0 million (Q3 2024: EUR -14.1 million)
• Implementation of SHAPE30 transformation strategy remains fully on track

ElringKlinger AG (ISIN DE0007856023 / WKN 785602) has released its financial results for the third quarter of 2025. Amid persistently challenging market conditions, the Group generated revenue of EUR 395.5 million in the third quarter just ended (Q3 2024: EUR 440.8 million). In this context, it should be noted that the two divested Group entities in Switzerland and the United States had contributed revenue of EUR 34.1 million in the third quarter of the preceding financial year. Adjusted for this contribution to revenue, the comparative figure for the previous year was EUR 406.7 million. Alongside M&A-related factors, movements in exchange rates had a dampening effect on revenue. Adjusted for both elements, the Group recorded a slight organic downturn in revenue of EUR 2.8 million or 0.6% in the third quarter of 2025 and organic revenue growth of EUR 29.1 million or 2.2% for the first nine months compared to the same period of the previous year. While automotive production has expanded by 3.8% worldwide in the year to date according to industry data, it has declined by 1.7% in the core market of Europe.

Asked to comment on the Group's financial results, Thomas Jessulat, CEO of the ElringKlinger Group, said, "We are continuing on our path of transformation, and this is reflected in our quarterly figures. Against the backdrop of a volatile and difficult market environment, we have recorded organic growth in revenue in the year to date, and with an adjusted EBIT margin of 5.4% we remain fully on track to achieve the margin targeted. In pursuing our SHAPE30 transformation strategy and the measures drawn up on this basis, we have been able to further hone the Group's profile and are currently in the process of preparing for the ramp-up of series production relating to major orders received in the area of Battery Technology." 

Divergent market dynamics in key automotive regions

Group revenue developed along different lines in the various automotive regions around the globe. While revenue generated from sales in the regions covering Asia-Pacific and South America & Rest of the World increased slightly by 2.9% and 1.8% respectively (adjusted for currency effects by 7.7% and 4.8% respectively), it trended lower in North America and Europe. Adjusted for currency effects and taking into account the Swiss company sold in 2024, revenue in the sales region of Europe declined by 1.0% in the quarter just ended. In North America, the sluggish trend affecting the automotive market as a whole was reflected in a 6.8% organic decline in revenue in the third quarter compared to the previous year, taking into account both currency effects and the divestment of the US company.

Inconsistent revenue trajectories in the respective segments

The automobile industry as a whole has been showing signs of weak momentum in production output, particularly in Europe and North America. This is also reflected in revenue generated from sales in the Original Equipment segment, which fell by EUR 27.1 million year on year to EUR 261.7 million in the third quarter of 2025 (Q3 2024: EUR 322.9 million). In this case, revenue for the same quarter of the previous year has been adjusted by EUR 34.1 million to account for revenue contributed by the two companies that have since been sold. In total, ElringKlinger generated revenue of EUR 820.4 million in this segment in the first nine months (9M 2024: EUR 990.6 million or EUR 867.8 million excluding revenue from the two divested companies).

The Aftermarket segment once again recorded double-digit growth with revenue of EUR 96.1 million (Q3 2024: EUR 84.9 million). Growth of EUR 11.2 million or 13.2% was again driven by all key sales regions in this reporting quarter, with Germany and South America making the most notable contributions. The Engineered Plastics segment, which is broadly positioned across all industries, has also been expanding significantly and recorded revenue of EUR 37.4 million in the quarter just ended (Q3 2024: EUR 32.8 million).

Successful execution of SHAPE30 transformation strategy continues

Operating within a difficult and ever-changing environment and faced with diverging trends in the global market over the course of the third quarter of 2025, the Group is continuing to pursue its chosen path of transformation. The measures derived from this strategic approach are aimed at raising efficiency levels within the Group. The Group's decision to consolidate its global network of locations and discontinue activities at the Thale site is to be seen in this context. The Group also intends to close three other sites. At the same time, unprofitable product groups such as ElringKlinger's systems business for electric drive units were discontinued. Primarily impairment losses resulting from the divestment of two Group entities led to negative exceptional items of EUR 58 million at the end of the third quarter 2024.

In the current year to date, additional SHAPE30-related measures and a customer insolvency have resulted in negative exceptional items amounting to EUR 35.1 million. This figure also includes extraordinary expenses from the STREAMLINE efficiency program, introduced by ElringKlinger in the second quarter of 2025 in an effort to reduce staff costs within the Group.

Profitability at a stable level: adjusted EBIT margin at 5.4%

Adjusted EBIT, which also takes into account exceptional items relating to SHAPE30 measures, amounted to EUR 21.2 million in the third quarter of 2025 (Q3 2024: EUR 23.0 million), which corresponds to a slight improvement in the adjusted EBIT margin to 5.4% (Q3 2024: 5.2%). The Group posted adjusted EBIT of EUR 65.9 million (9M 2024: EUR 69.5 million) in the first nine months of the current financial year, resulting in an adjusted EBIT margin of 5.4% (9M 2024: 5.1%). Viewed from both a quarterly and a nine-month perspective, this confirms that the Group's efficiency measures introduced as part of SHAPE30 are already taking effect and that its operating profitability is moving in a positive direction. Based on this performance, the Group is fully on track to achieve the margin targeted for the financial year as a whole of around 5% of Group revenue.

Because the third quarter of the previous year had included non-cash impairment losses in connection with the divestment of two Group companies, Reported EBIT in the third quarter of 2025 amounting to EUR 4.5 million was significantly above the previous year's level of EUR minus 35.2 million. Reported EBIT for the period from January to September 2025 also improved significantly at EUR 30.8 million, compared with the previous year (9M 2024: EUR 11.0 million). At EUR -0.16 in the period from January to September 2025 and EUR -0.07 in the third quarter of 2025, earnings per share were significantly higher than the prior-year figures of EUR -0.52 and EUR -0.89 respectively. Excluding the extraordinary expenses, the figure for the quarter under review would have been EUR 0.25 (Q3 2024: EUR 0.03) or EUR 0.51 (9M 2024: EUR 0.40).

Investments in property, plant, and equipment up as expected in preparation for growth

Investments continued to be an essential prerequisite for the Group's successful series production ramp-up in the E-Mobility unit in the third quarter. Accordingly, payments for investments in property, plant, and equipment amounted to EUR 27.8 million in the third quarter of 2025 (Q3 2024: EUR 18.6 million) and EUR 99.0 million in the first nine months (9M 2024: EUR 58.2 million). This corresponds to a ratio (in terms of sales) of 8.1% for January to September 2025 (9M 2024: 4.3%) and 7.0% for the third quarter (Q3 2024: 4.2%).

Positive operating free cash flow in the third quarter

As of September 30, 2025, net working capital (NWC) amounted to EUR 389.1 million (Sept. 30, 2024: 503.2 EUR million). In the third quarter of 2025, it fell by EUR 28.3 million quarter on quarter amid the continuing ramp-up and was down significantly compared to the figure of EUR 503.2 million posted at the end of the same quarter of the previous year. As of September 30, 2025, the NWC ratio, calculated as a percentage of Group revenue, was 23.7% (Sept. 30, 2024: 28.1%), which corresponds to an improvement of 4.4 percentage points. 

Overall, operating free cash flow in the third quarter of 2025 was well into positive territory at EUR 18.0 million (Q3 2024: EUR -14.1 million). However, looking at the first nine months, operating free cash flow stood at EUR -78.6 million (9M 2024: EUR 24.2 million) due to the substantial cash outflow in the first quarter of 2025.   

As expected, net financial liabilities trended higher as a result of investments in the E-Mobility business unit in preparation for future growth, amounting to EUR 388.8 million as of September 30, 2025 (Sept. 30, 2024: EUR 349.6 million). The net debt-to-EBITDA ratio increased to 2.2 as of September 30, 2025 (Sept. 30, 2024: 1.7).

Outlook for 2025 financial year confirmed

Conditions as a whole remain challenging in geopolitical, macroeconomic, and industry-specific terms. The latest estimates by industry data service provider S&P Global Mobility predict a 2.0% increase in global production output for the current financial year, driven primarily by the Asia-Pacific region as well as South America and the Rest of the World. In contrast, forecasts for Europe and North America point to declining markets in 2025.

Against the backdrop of this challenging environment and in view of its financial results for the first nine months, ElringKlinger can confirm its guidance for the 2025 financial year as a whole. In this context, the Group continues to expect to reach a level of organic revenue that is roughly on a par with that of the previous year. ElringKlinger has maintained its projection of an adjusted EBIT margin of around 5%. Furthermore, the Group continues to expect operating free cash flow of around 1 to 3% of Group revenue and an adjusted ROCE of around 6%. Expectations with regard to the other key financials in 2025 can also be confirmed in line with the guidance provided in the outlook section of the 2024 annual report.

Key financials for the third quarter and the first nine months of 2025

* As regards the annual comparison, it should be noted that the two Group entities in Buford, GA (USA) and Sevelen (CH) were divested at the end of 2024

^? Figure adjusted for the two divested Group entities

^# Calculated as the ratio of net financial liabilities to EBITDA (net debt/EBITDA)

About ElringKlinger  

As a global development partner drawing on many years of expertise, ElringKlinger has established itself as one of the leading suppliers to the automotive industry, in addition to serving customers in the plastics engineering and other sectors. Since its inception in 1879, the technology group based in Dettingen/Erms, Germany, has been consistent in its efforts to provide innovative answers to present and future challenges. Today, ElringKlinger is actively shaping the future of sustainable mobility with the help of pioneering product and system solutions tailored to any type of drive platform, alongside sealing and shielding applications as well as lightweighting concepts. With a track record of two decades in the field of cutting-edge battery and fuel cell technology, the Group was at the forefront of establishing itself as an expert in e-mobility. Operating with a dedicated team of around 9,000 #transformationpioneers at over 40 locations worldwide and revenue of approx. EUR 1.8 billion in 2024, ElringKlinger is driving the sustainable transformation of the industry – brimming with passion, talent, and innovation.

Legal notice

This release contains forward-looking statements. These statements are based on the expectations, market assessments, and forecasts of the Management Board and the information currently available to it. These forward-looking statements shall, in particular, not be construed as guarantees of future developments and results referred to therein. Although the Management Board is of the firm opinion that the statements made and their underlying beliefs and expectations are realistic, they are based on assumptions that may prove to be incorrect. Future results and developments depend on a variety of factors, risks, and uncertainties that may lead to changes in the expectations and judgments that have been expressed. These factors include, for example, changes in general economic and business conditions, fluctuations in exchange rates and interest rates, lack of acceptance of new products and services, and changes in business strategy.