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Investing.com -- Fuchs SE (ETR:FPE3) on Wednesday reported preliminary second-quarter results below expectations and cut its full-year outlook due to weak economic conditions.
The company posted second-quarter sales of €880 million, representing a 1.6% decrease, while earnings before interest and taxes (EBIT) fell 2.9% to €101 million.
The EBIT figure came in 10% below analyst consensus of €112 million.
Fuchs SE revised its fiscal year 2025 guidance, now expecting both sales and EBIT to remain at last year’s levels of €3.5 billion and €434 million respectively.
This marks a reduction from previous targets of €3.7 billion in sales and €460 million in EBIT. The new outlook sits approximately 5% below current market consensus of €459 million for EBIT.
The company attributed the guidance adjustment to several factors, including muted demand from key customer groups amid tariff discussions initiated by the United States, sluggish industrial production across Europe, and ongoing geopolitical tensions.
Fuchs anticipates these challenging economic conditions will persist throughout the second half of 2025.
Despite the disappointing results, particularly following recent contract wins, the company is expected to maintain solid cash generation with limited capital expenditure requirements over the coming years.
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