Strong First Quarter Performance#

Fuchs SE recently announced its first quarter results, showcasing performance that surpassed analyst expectations. The company reported sales of €934 million and earnings before interest and tax (EBIT) of €125 million for the quarter ending March 31.

Sales Growth Across Regions#

Sales increased by 1.1% on a reported basis and 4.5% organically, which means the growth was achieved without considering currency fluctuations or acquisitions. This growth exceeded the consensus estimate of €912.5 million. EBIT rose by 15.7% compared to the same period last year, beating the estimate of €112.4 million, resulting in an EBIT margin of 13.3%, up from 11.7% in the first quarter of 2025.

The EMEA (Europe, the Middle East, and Africa) region led the way with reported sales of €547 million, reflecting a 4.8% increase both on a reported and organic basis, driven by higher sales volumes. In the Asia-Pacific region, sales reached €266 million, a 0.8% increase on a reported basis and a 6.4% increase organically, supported by growth in markets like China and Australia. Conversely, North and South America saw sales of €172 million, down 6% on a reported basis but up 3.3% organically, with the decline attributed to foreign exchange impacts.

Margin Developments and Cash Flow#

The EBIT margin improved significantly in Asia-Pacific, increasing by 479 basis points, partly due to a land sale in Australia. In EMEA, the margin rose by 137 basis points due to higher sales. However, the margin in North and South America decreased by 43 basis points.

Fuchs SE also reported a notable increase in free cash flow after acquisitions, reaching €54 million compared to just €3 million in the first quarter of 2025. This improvement was driven by strong earnings and effective management of net working capital. The company's net liquidity increased to €203 million from €151 million at the end of 2025.

Adjusted Full-Year Guidance#

In light of these results, Fuchs SE has adjusted its full-year guidance for 2026, now expecting sales to be significantly above €3.7 billion, influenced by inflation. The previous target was set at €3.7 billion. EBIT is still anticipated to be around €450 million, while free cash flow is now expected to be slightly below €270 million, down from the previous target of €270 million.