Q2 2026 Jost Werke SE Earnings Call Transcript
Key Points
- Record first half-year 2026 with sales up 12% to EUR857 million and adjusted EBIT up 21% to EUR88 million, achieving a margin of 10.3% within the strategic 10%-12% corridor.
- Strong organic growth of approximately 9% across all three regions and all business lines, driven by market share gains and new customer wins.
- Hyva integration is on track, with cross-selling synergies ramping up and contributing to profitability, while integration costs remain in line with guidance.
- Americas region delivered a strong performance despite challenging markets, with organic sales up 9.9% and adjusted EBIT margin improving to above 12%, supported by profitable project ramp-ups and market share gains.
- APAC region achieved record sales of EUR223 million with organic growth of 14.6%, driven by strong demand in China and India, and margin expansion to 15.4%.
- Improved capital efficiency with ROCE up 3.5 percentage points to 16.3%, and leverage improved to 1.81 times, back within the strategic range.
- Free cash flow turned significantly positive in Q2, with expectations of working capital release in H2, supporting cash generation.
- Confirmed full-year 2026 guidance with expectations of single-digit sales growth and mid-to-high single-digit adjusted EBIT growth, indicating confidence in continued performance.
- Strong order book in Americas for H2, with market recovery expected, particularly in Class 8 trucks, driven by pent-up demand and EPA 2027 pre-buy effects.
- Agricultural business line grew 22% organically, driven by strong demand in South America, APAC, and Europe, along with dealer business pickup in the US.
- EMEA region's adjusted EBIT margin was only 6%, burdened by group costs, higher input costs, and rising logistics and freight costs, which may pressure near-term profitability.
- The business-model change shifting profitable sales from EMEA to other regions reduces EMEA's reported margins, potentially confusing investors and masking regional performance.
- Higher input costs, including freight and logistics, are expected to persist, with price adjustments to OEMs delayed by 3-6 months, creating a temporary margin squeeze.
- Working capital increased significantly to support growth, leading to lower free cash flow in H1 compared to last year, though expected to reverse in H2.
- Tax rate was elevated in H1 due to higher taxes in China, which may continue as a structural impact, potentially affecting net income.
- Market conditions in Americas were challenging, with truck and trailer markets declining 10-15% and 5-10% respectively, though partially offset by market share gains.
- The Middle East conflict and potential supply chain disruptions remain a risk, with management maintaining higher safety stocks, which could tie up capital.
- Seasonality is expected to impact H2 margins, with Q1 typically the strongest, potentially leading to lower sequential profitability.
- The sale of the tipper business may close in Q3/Q4, which could reduce sales and create some uncertainty in guidance execution.
- India's high growth is accompanied by higher supply-chain costs due to capacity utilization, which may be temporary but could pressure margins in the short term.
Good morning, everybody from Neu-Isenburg, and a warm welcome to our earnings conference for the first half year and the second quarter of 2026.
I'm very happy to report that we had a record first half year in 2026. Our sales grew 12% to EUR857 million, and our adjusted EBIT grew 21% to EUR88 million, which calculates to a margin of 10.3%.
I'm very happy with the strong quality of our growth. Organic sales went up around 9%, driven by all three regions and all our business lines.
The Hyva integration is fully on track. We are creating the cross-selling synergies, and they are ramping up. And with our profitability, we are back into our strategic corridor between 10% and 12% in terms of adjusted EBIT margin.
And we're winning new customers worldwide. Our market share is growing across business lines consistently, and we are executing our AMBITION 2030 strategy.
Let's look at the financial numbers a bit more in detail. It shows our strength and our resilience for the Q2. So sales were up 13% to EUR440
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