Fuchs beats Q3 earnings forecast, keeps 2025 guidance steady

Investing.com -- Fuchs Se (ETR:FPEn) on Friday reported stronger third-quarter results, beating earnings forecasts and confirming its full-year guidance. 

Analysts at Jefferies said the performance “should provide some relief today” following the company’s guidance downgrade in July.

The German lubricant manufacturer posted quarterly sales of €896 million, down 0.7% on a reported basis but up 1.9% organically. 

The figure was broadly in line with the Visible Alpha consensus estimate of €893.7 million. 

Earnings before interest and taxes rose 0.9% to €117 million, above the €113.5 million consensus forecast, resulting in an operating margin of 13.1%, compared with 12.9% in the same period last year. Net income totaled €84 million, versus expectations of €80 million.

Free cash flow after acquisitions reached €100 million, exceeding consensus projections of €70.5 million. 

The brokerage described the figure as “solid,” though it was below the €125 million reported in the third quarter of 2024. 

Jefferies also cited “solid improvement vs 2Q25 alongside cost-avoidance measures,” noting that North and South America posted “a significant uplift in earnings…(+450bps).” 

Net liquidity at the end of the quarter stood at €30 million, compared with €41 million in fiscal 2024.

Regional performance showed gains in Asia-Pacific and the Americas, while Europe remained steady. In Asia-Pacific, reported sales grew 1.2%, or 8.3% organically, to €257 million, above the consensus estimate of €252.5 million. 

The region’s profitability rose 219 basis points to 14.8%, supported by strength in the specialty business in China, which Jefferies described as “very solid.”

In North and South America, sales increased 0.6% reported and 5.9% organically to €171 million, ahead of the €165.3 million consensus. Jefferies attributed the improvement to “cost-avoidance measures and an improved product portfolio mix.”

In the Europe, Middle East and Africa region, sales were flat at €517 million on a reported basis and down 0.8% organically, slightly above the €515.1 million consensus. Jefferies linked the stagnation to “weaker automotive production.”

Fuchs confirmed its full-year 2025 guidance, expecting sales and EBIT to remain at approximately the previous year’s levels of €3.525 billion and €434 million, respectively. Market consensus currently projects €3.547 billion in sales and €430 million in EBIT.

Jefferies said the quarter’s outcome and reaffirmed outlook “should provide some relief” after the July downgrade, with October momentum described as “looking good.” 

The brokerage reiterated its “buy” rating and maintained a price target of €55, representing a 44% upside from the prior day’s closing price of €38.32.

The analysts added that the Asia-Pacific region “continues to deliver outstanding performance,” while the EMEA business “has maintained its strong position at the high level seen in the previous year.” 

Jefferies added that the company’s consistent performance across regions, alongside disciplined cost control, contributed to the earnings beat.