SAF-Holland SE (SFHLF) Q2 2026 Earnings Call Transcript

Overall, we delivered another solid quarter, which supports the confirmation of our outlook for fiscal year 2026. Sales increased to EUR 454 million, supported by an organic growth of 3.8% and the continued recovery and stabilization across our key OE markets. This positive top line development was also reflected in our profitability. Adjusted EBIT margin increased to 9.6% from 9.1% a year ago, while adjusted EBITDA margin improved to 13.2%. At the same time, we continue to generate a strong cash flow. Operating free cash flow increased to EUR 21 million, driven by further improvements in net working capital management. This strong cash generation also supported a solid balance sheet with an unchanged leverage at 2.3x despite the dividend payment and the ongoing execution of our share buyback program. Altogether, our second quarter performance once again demonstrates the strength of SAF-Holland's business model, combining organic growth, improving profitability and a strong cash generation. We delivered a solid second quarter with group sales increasing by 2.6% year-over-year to now EUR 454 million. Organic growth reached 3.8%, supported by continued strength in the EMEA trailer OE business and strong momentum in APAC.