31.07.2025
Subdued demand from key customer groups due to a strained economic environment
Sales revenues growth of 2% to EUR 1,804 million due to business expansion and acquisitions
EBIT at EUR 209 million 4% below the previous year
Free cash flow before acquisitions 17% or EUR 12 million above the previous year
Full-year outlook 2025 adjusted
By company location
“After a satisfactory first quarter with EBIT at the same level as the strong previous year, the second quarter, particularly June, fell short of our expectations.
Nevertheless, in the first half of the year we were able to continue growing our business contrary to general market trends.
Our sales revenues increased not only due to acquisitions but also organically by a total of EUR 40 million or 2% to EUR1,804 million.
Unfavourable mix changes in the U.S. and economic pressures resulting from tariff policies, weighed on the North and South America region.
The additional sales revenues generated within the Group and the improved earnings in the Asia-Pacific region were not sufficient to offset these earnings shortfalls, nor the primarily acquisition- and inflation-driven cost increases.
As a result, EBIT for the first half of the year fell by EUR 9 million to EUR 209 million year-on-year.
The current economic and geopolitical situation remains tense. Tariff discussions originating from the U.S. and weak industrial production in Europe result in subdued demand from key customer groups.
Against this backdrop, we have adjusted our outlook for the full year. We now expect sales revenues to be on par with the previous year.
EBIT expectations have been revised downward by 6%, meaning we strive for repeating last year’s peak level.
We continue to see ourselves well positioned and are currently working at full speed on our FUCHS100 strategic program to drive further profitable growth in the future.”
Stefan Fuchs, Chairman of the Executive Board FUCHS SE
Business development in the group
In the first six months of 2025, FUCHS generated sales revenues of EUR 1,804 million (1,764), which were 2% above the prior-year period due to positive business development and external growth.
EBIT decreased by EUR 9 million or 4% to EUR 209 million (218) year-on-year, due to inflation-driven cost increases and unfavorable mix changes in the North and South America region.
The EBIT margin at 11.6% (12.4) was below the previous year.
Earnings after tax at EUR 144 million (155) were below the previous year's level.
Earnings per ordinary share amounted to EUR 1.09 (1.17) and EUR 1.10 (1.18) per preference share.
Free cash flow before acquisitions was at EUR 81 million (69), 17% above the previous year's level.
Business development in the regions
Sales revenues in the region Europe, Middle East, Africa (EMEA) of EUR 1,039 million (1,027) increased by 1% year-on-year, primarily driven by external growth.
Germany saw a decline in sales revenues amid a difficult economic environment and a subdued automotive market.
Other European regions also fell short of the previous year. South Africa, however, recorded encouraging gains.
External growth of EUR 27 million resulted from the acquisitions of LUBCON and STRUB in the second half of 2024 and the takeover of BOSS at the beginning of the current financial year.
EBIT of EUR 109 million (112) was 3% below the strong prior-year level.
Sales revenues in the Asia-Pacific region of EUR 506 million (485) increased by 4% year-on-year, due to gains in the specialty business in China and the positive business development in India and Australia.
EBIT of EUR 64 million (55) was 16% above the strong previous year.
This earnings improvement was mainly driven by growth in China. Australia, India, and Vietnam also showed a positive development.
Sales revenues in the North- and South America region of EUR 350 million (341) increased by 3% year-on-year, due to business growth.
External growth of EUR 5 million was amongst others generated through the acquisition of a long-standing distribution partner in Peru in the beginning of the financial year and the April acquisition of IRMCO, a U.S.-based specialist in metal forming lubricant solutions.
Sales revenues growth in the region could not offset mix changes and cost increases.
Thus, EBIT decreased by 26% to EUR 35 million (47). South America continues to face a challenging economic environment.
Outlook for 2025 adjusted
In its latest July outlook, the International Monetary Fund (IMF) has slightly revised its April forecast.
For the current year, the IMF now expects global economic growth of 3.0% (2.8).
For Germany, the IMF now anticipates slight growth of 0.1%, after previously forecasting stagnation. The slight upward revision is attributed to frontloading effects in anticipation of higher tariffs.
FUCHS continues to operate in a challenging environment.
The restrained demand from key customer groups due to tariff discussions originating in the U.S., subdued industrial production in Europe, and ongoing geopolitical tensions are increasing uncertainty.
We currently assume that the weak global economic situation will continue into the second half of the year.
Accordingly, we have adjusted our full-year outlook as follows:
Sales revenues: at previous year´s level (EUR 3,525 million); previously: around EUR 3.7 billion
EBIT: at previous year’s level (EUR 434 million); previously: around EUR 460 million
FVA: at previous year’s level (EUR 245 million); previously: around EUR 260 million
Free cash flow before acquisitions: around EUR 260 million (unchanged)
Our global track record and solid financial base remain robust, and FUCHS continues to focus on profitable growth.
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