Original-Research: Schaeffler AG - from Quirin Privatbank Kapitalmarktgeschäft
Classification of Quirin Privatbank Kapitalmarktgeschäft to Schaeffler AG
No fresh short-term catalysts Schaeffler's Q3 release (4th November) confirmed last week's pre-announced (28th October) numbers and offered little new for the market to digest. The underlying performance was solid with 1.3% organic growth, 4.5% adjusted EBIT margin, and EUR +175m FCF, however the quarter was marred by a EUR 165m impairment charge (adversely affected by an impairment loss on software licenses) which represents a significant bottom line misstep and diluted what could have been a clean, positive set of results. After nine months net income stood at EUR -223m, our expectation for a positive net result in FY 2025 is unlikely to be fulfilled; the result is likely to be significantly negative (new QP 2025e: EUR -138m vs. old EUR +235m), we are looking ahead to 2026 to return to profitability (QP 2026e: EUR +573m). It should also be noted that the current free float and weekly trading volumes (see chart below) are weak in terms of attracting larger institutional investors. Something needs to be done here. Management has reaffirmed a clear set of priorities, emphasizing disciplined execution and value creation. The company aims to deliver its strong order book in E-Mobility and Powertrain/Chassis, realize synergies through structural efficiency measures, and optimize its business portfolio and capital allocation. This focused strategy strengthens operational resilience, supports margin expansion, and positions the company for sustained profitable growth in fast-evolving mobility markets. We confirm our BUY rating and TP of EUR 7.50. You can download the research here: SCHAEFFLER_AG_20251106 For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2225154 06.11.2025 CET/CEST
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