Q2 2025: ElringKlinger records improved operating profit amid challenging conditions

PRESS RELEASE

 

Q2 2025: ElringKlinger records improved operating profit amid challenging conditions

 

• Group revenue at EUR 408.3 million (Q2 2024: EUR 445.0 million) in second quarter of 2025 amid challenging market conditions; organic growth of 4.8%
• Profitability remains on track: adjusted EBIT margin at 5.9% (Q2 2024: 5.0%), adjusted EBIT at EUR 24.2 million (Q2 2024: EUR 22.5 million)
• Group generates operating free cash flow of EUR 23.8 million (Q2 2024:
  EUR -4.5 million)
• ElringKlinger drives transformation forward: E-Mobility revenue more than doubled

 

ElringKlinger AG (ISIN DE0007856023 / WKN 785602) has presented its financial results for the second quarter of 2025. The Group recorded revenue of EUR 408.3 million for the reporting period (Q2 2024: EUR 445.0 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 44.1 million in the second quarter of 2024. Therefore, the comparative base for the same quarter of the previous year is EUR 400.9 million. In addition, currency-related factors had a dampening effect on revenue. Organically, i.e., adjusted for currency and M&A effects, revenue increased by EUR 21.5 million or 4.8% in the second quarter and by EUR 32.0 million or 3.5% in the first half of the year compared to the same period of the previous year. Thus, the Group managed to outperform the market as a whole, which grew by 2.6% globally and shrank by 1.7% in Europe in the second quarter of 2025.

Thomas Jessulat, CEO of the ElringKlinger Group, on the quarterly figures: "In what remains a challenging market environment, we were able to achieve a strong Group performance, which also reflects the impact of transformation. We generated substantial revenue growth, particularly in the E-Mobility business unit, and recorded a significant improvement in the Group's operating profit and cash flow. This clearly illustrates that we are on the right track with our SHAPE30 transformation strategy and our efforts to hone the Group’s profile. Despite this, we anticipate that the second half of the year will be rather subdued in view of projected market trends – not least because developments surrounding geopolitics and trade policy will continue to cause uncertainty."

 

Mixed underlying parameters in key automotive regions

In the region covering Europe (excluding Germany), the ElringKlinger Group achieved growth of 0.8% in the second quarter of 2025, and as much as 1.9% adjusted for currency effects, despite a contraction in automobile production. By contrast, revenue in Germany fell by 6.2%. Regional factors also had a dampening effect on the revenue trajectory in North America. Adjusted for currency effects and taking into account the divestment of the entity in Buford, GA (USA), in 2024, revenue in this region was down 3.0%. In the Asia-Pacific region, meanwhile, the positive trend continued with a 2.0% increase in revenue in line with growth in regional automotive production.

 

E-Mobility business unit with strong performance

Held back by an anemic economy and sluggish automotive production in Europe, the Original Equipment segment recorded a year-on-year decline in revenue of EUR 51.4 million to EUR 276.9 million in the second quarter of 2025 (Q2 2024: EUR 328.3 million). However, this includes a revenue contribution of EUR 44.1 million from the two entities sold in 2024, which no longer applies in 2025. A detailed analysis of the segment confirms the efficacy of the Group's transformation: growth in the E-Mobility business unit by EUR 22.3 million or 126% to EUR 40.0 million (Q2 2024: EUR 17.7 million) was fueled in particular by the series production ramp-up of cell contacting systems at the Neuffen (Germany) site. The segment's adjusted EBIT margin improved from -0.4% to 1.0% in the second quarter of 2025.

 

Substantial growth in Aftermarket and Engineered Plastics segments

With growth once again reaching double digits, the Aftermarket segment succeeded in maintaining its upward trajectory and generated revenue of EUR 95.4 million (Q2 2024: EUR 84.4 million). As in the preceding three months, all key sales regions contributed to growth generated in the quarter just ended. Similarly, the robustly positioned Engineered Plastics segment generated revenue of EUR 35.7 million (Q2 2024: EUR 31.5 million) thanks to its broadly diversified industry portfolio, despite having to operate against the backdrop of subdued economic growth.

 

Profitability remains on track: adjusted EBIT margin at 5.4% in H1 2025

In a volatile market, the Group remained on track and generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 35.8 million in the second quarter of 2025 (Q2 2024: EUR 49.7 million). This performance was impacted primarily by non-recurring factors stemming from transformation and the customer base. A case in point is the Group's STREAMLINE program aimed at reducing staff costs at a structural level. The insolvency of one of the Group's customers and measures taken as part of the SHAPE30 transformation strategy also had an adverse effect on earnings. Excluding these exceptional items of EUR 17.9 million in total, the Group generated adjusted EBIT of EUR 24.2 million in the second quarter (Q2 2024: EUR 22.5 million), which corresponds to an adjusted EBIT margin of 5.9% (Q2 2024: 5.0%). Accordingly, the reported EBIT amounted to 6.3 million (Q2 2024: EUR 22.4 million), corresponding to a reported EBIT margin of 1.6 % (Q2 2024: 5.0 %). In the first half, adjusted EBIT stood at EUR 44.8 million (H1 2024: EUR 46.5 million), while the adjusted EBIT margin was up at 5.4% (H1 2024: 5.1%).

As a result of the non-recurring effects and higher net finance cost, earnings per share of EUR -0.09 in the first six months of 2025 and EUR -0.15 in the second quarter of 2025 were down significantly on the previous year's figures of EUR 0.37 and EUR 0.15 respectively. Adjusted for non-recurring effects, earnings per share amounted to EUR 0.26 in the first half of 2025 (H1 2024: EUR 0.37).

 

Preparations for further series ramp-up reflected in investment in property, plant, and equipment

Alongside the financing of operating business, the direction taken by ElringKlinger's financial metrics also reflects the Group's active investment approach adopted for the purpose of tapping into high-volume series production projects in the E-Mobility unit and unlocking growth potential in a targeted manner. Payments for investments in property, plant, and equipment amounted to EUR 26.3 million in the second quarter of 2025 (Q2 2024: EUR 22.7 million) and to EUR 71.3 million in the first half of 2025 (H1 2024: EUR 39.6 million) after an investment-intensive first quarter of 2025. This translates into a ratio of 6.4% (Q2 2024: 5.1%) and 8.6% (H1 2024: 4.3%) respectively.

 

Year-on-year improvement in net working capital

As of June 30, 2025, net working capital (NWC) amounted to EUR 417.4 million (June 30, 2024: EUR 482.4 million), an improvement of EUR 65.0 million compared to the same quarter of the previous year, which is attributable in part to the divestment of the two Group entities at the end of 2024. At the end of the reporting period on June 30, 2025, the NWC ratio, calculated in relation to Group revenue, thus stood at 25.2%. This constitutes an improvement in the key performance indicator both compared to the reporting date of the previous quarter (by 2.4 percentage points) and compared to the 2024 half-year reporting date (by 1.6 percentage points).

Operating free cash flow improved from EUR -4.5 million to EUR 23.8 million in the second quarter of 2025, partly due to the measures taken with regard to working capital. The figure for the first half of 2025 stood at EUR -96.5 million (H1 2024: EUR -10.3 million).

Net financial liabilities were up at EUR 374.9 million as of June 30, 2025 (June 30, 2024: EUR 350.4 million), which was attributable in part to investing activities in preparation for high-volume series production orders. The net debt-to-EBITDA ratio increased to 2.1 as of June 30, 2025 (June 30, 2024: 1.7).

 

Guidance confirmed

The considerable level of uncertainty and volatility surrounding the global economy is reflected, in particular, in the cyclical automotive industry. The latest forecasts issued by industry data service provider S&P Global Mobility point to slight global growth of 0.4% for 2025 as a whole, whereas the April outlook had suggested that the market would shrink. Against the backdrop of the dynamic changes currently taking place in the trade and geopolitical arena and on the basis of its half-year results, ElringKlinger has confirmed its forecast for the current financial year. Accordingly, the Group still expects to achieve organic revenue at around the prior-year level in the current financial year, even if the situation with regard to orders and recent one-off effects as well as the market assessment for Europe and North America point to a weaker second half of 2025. 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%. The targets relating to the other key financials and the medium-term targets have also been confirmed.

 

Key financials for the second quarter and first half of 2025

in EUR million	H1 2025	H1 2024	∆ abs.	∆ rel.	Q2 2025*	Q2 2024	∆ abs.	∆ rel.
Order intake	712.5	854.3	-141.8	-16.6 %	295.6	364.9◊	-69.3	-19.0 %
Order backlog	1,039.8	1,249.3	-209.5	-16.8 %	1,039.8	1,249.3◊	-209.5	-16.8 %
Revenue	831.4	910.2	-78.8	-8.7 %	408.3	445.0	-36.7	-8.2 %
of which FX effects			-22.0	-2.4 %			-14.1	-3.2 %
of which M&A			-88.8	-9.8 %			-44.1	-9.9 %
of which organic			+32.0	+3.5 %			21.5	+4.8 %
EBITDA	77.7	100.5	-22.8	-22.7 %	35.8	49.7	-13.9	-28.0 %
Adjusted EBIT	44.8	46.5	-1.7	-3.7 %	24.2	22.5	1.7	+7.6 %
Adjusted EBIT margin  (in %)	5.4	5.1	0.3 PP	-	5.9	5.0	0.9 PP	-
Net income    (after minorities)	-5.7	23.2	-28.9	->100 %	-9.2	9.8	-19.0	->100 %
Earnings per share  (in EUR)	-0.09	0.37	-0.46	->100 %	-0.15	0.15	-0.3	->100 %
Investments (in PPE)	71.3	28.3	+43.0	+>100 %	26.3	22.7	+3.6	+15.6 %
Operating free cash flow	-96.5	-10.3	-86.2	->100 %	23.8	-4.5	+28.3	->100 %
Net Working Capital (NWC)	417.4	482.4	-65.0	-13.5 %
NWC ratio (in %)	25.2	26.8	-1.6 PP	-
Equity ratio (in %)	36.7	45.1	-8.4 PP	-
Net financial debt	374.9	350.4	+24.5	+7.0 %
Net Debt/EBITDA	2.1	1.7	+0.4	23.5 %
Employees (as of June 30)	8,956	9,560	-604	-6.3 %

 

* In the annual comparison, it should be noted that the two Group companies in Buford, GA (USA) and Sevelen (CH) were sold at the end of 2024.

^◊  Value adjusted for the two divested Group companies.

 

 

 

About ElringKlinger  

As an independent supplier operating worldwide, the ElringKlinger Group has established itself as a powerful and trusted partner to the automotive industry – acknowledged for its exceptional depth of expertise. Our product portfolio encompasses innovative solutions for passenger cars and commercial vehicles powered by electric motors, hybrid technology, or combustion engines. Alongside the powertrain, other areas of application include the underbody, chassis, braking system, interior, and vehicle body. We were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility – with pioneering battery and fuel cell technology, and associated components and assemblies, such as plastic housings, and punched and formed metal parts.

Customized lightweight components engineered by ElringKlinger can be used throughout the entire vehicle; they deliver tangible benefits in terms of weight reduction, efficiency, and functional integration, especially in e-mobility applications.

Additionally, we serve the aftermarket in more than 140 countries with an extensive range of spare parts.

These efforts are supported by a dedicated workforce of more than 9,000 people employed within the ElringKlinger Group. Operating at more than 40 sites worldwide, ElringKlinger has established a global presence and is closely aligned with its customers in all major automotive regions.

 

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.

Contact:
For further information, please contact:

ElringKlinger AG
Dr. Jens Winter
Strategic Communications
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: +49 7123 724-88335
E-mail: jens.winter@elringklinger.com