Schaeffler shares fall 16 after results

Schaeffler shares fall 16 after results

Schaeffler Shares Fall 16% After Mixed 2025 Results

Schaeffler AG (XTRA: SHA0) shares declined sharply following the release of its 2025 financial results, with a 16.11% drop over seven days and a 7.04% single-day decline, despite the company reporting performance in line with guidance. The mixed market reaction reflects diverging views on valuation, growth prospects, and operational challenges.

The company reported revenue of €23.5 billion for 2025, slightly below the pro-forma 2024 figure of €24.3 billion, with EBIT before special items rising to €936 million (4.0% margin) from €842 million (3.5%). Free cash flow improved significantly to €266 million, driven by early OEM payments and cost discipline, though one-off restructuring costs and debt servicing remain headwinds.

Schaeffler's E-Mobility division, a key growth area, saw revenue rise 7.0% to €5.0 billion, with improved margins (-16.0% EBIT margin before special items, up from -22.1% in 2024). However, the division remains unprofitable, and legacy internal combustion engine (ICE) exposure, coupled with restructuring expenses, continues to pressure margins. The company also announced plans to expand into humanoid robotics and defense, aiming for these segments to contribute 10% of revenue by 2035.

Valuation debates persist. A consensus fair value estimate of €7.10 suggests the stock is 40.5% overvalued at its recent closing price of €9.98. This assessment hinges on E-Mobility scaling rapidly and synergies from the Vitesco merger offsetting legacy costs. Conversely, a discounted cash flow (DCF) model from Simply Wall St estimates a fair value of €14.30, emphasizing stronger cash flow potential.

Looking ahead, Schaeffler guided for 2026 revenue between €22.5–24.5 billion, with EBIT margins of 3.5–5.5% and free cash flow of €100–300 million. The company also proposed a dividend of €0.30 per share, up from €0.25 in 2024.

Investors remain split between optimism over long-term E-Mobility and robotics opportunities and concerns about near-term margin pressures and debt levels. The stock's volatility underscores the sector's sensitivity to macroeconomic and technological shifts.

(https://simplywall.st/stocks/de/automobiles/etr-sha0/schaeffler-shares/news/assessing-schaeffler-xtrasha0-valuation-after-solid-results): Simply Wall St analysis (February 2026)
(https://www.eqs-news.com/news/corporate/schaeffler-reports-solid-results-for-2025/09be9332-ffaf-4dab-9411-11717b33767d_en): Schaeffler AG 2025 Annual Results (March 3, 2026)