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SAF-HOLLAND Reports Preliminary FY 2025 Results with 9.5% Adjusted EBIT Margin Amid Market Challenges

By Editorial Staff

TL;DR

SAF-HOLLAND's resilient aftermarket business and cost management secured a solid 9.5% EBIT margin despite market challenges, offering stability advantages.

SAF-HOLLAND's sales declined 8% to EUR 1.73B due to weak original equipment demand, offset by aftermarket growth to 40% share and disciplined cost adjustments.

SAF-HOLLAND's focus on aftermarket parts ensures reliable commercial vehicle operation globally, supporting transportation infrastructure and economic stability during market fluctuations.

SAF-HOLLAND maintained double-digit margins in Americas and APAC regions despite sales drops, demonstrating operational resilience across diverse global markets.

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SAF-HOLLAND Reports Preliminary FY 2025 Results with 9.5% Adjusted EBIT Margin Amid Market Challenges

SAF-HOLLAND SE, a global supplier of trailer and truck components, has released preliminary financial results for fiscal year 2025, revealing a resilient performance in challenging market conditions. Group sales declined approximately 8% to around €1,734 million from €1,876.7 million in the previous year, primarily due to significantly reduced demand in original equipment markets across the Americas and APAC regions. Despite this contraction, the company maintained solid profitability with an adjusted EBIT margin of 9.5%, compared to 10.1% in fiscal year 2024.

The sales decline was partially offset by the robust performance of the aftermarket business, which increased its share of consolidated sales to approximately 40%, representing around €689 million in revenue. This growth reflects the increased product population in the market and demonstrates the segment's cyclical independence. In contrast, original equipment business sales decreased to about €1,045 million, accounting for 60% of group sales, with the trailer segment contributing €834 million and the truck segment €211 million.

Adjusted EBIT declined to approximately €164 million from €190.5 million in the previous year, influenced by higher restructuring expenses and negative currency effects. However, consistent cost structure adjustments, a favorable product mix with higher-margin aftermarket business, and continued synergy realization from the Haldex integration positively impacted earnings. Alexander Geis, Chairman of the Management Board and CEO, emphasized the company's resilience through targeted structural adjustments and cost management in a challenging environment.

Regionally, the EMEA region maintained its position as the largest sales contributor with €884 million in revenue, representing 51% of group sales. The region achieved an adjusted EBIT margin of 8.2% despite negative currency effects and increased overhead allocation. The Americas region experienced a significant 13% sales decline to €649 million, primarily due to investment restraint linked to US tariff policy affecting truck and trailer original equipment markets. Nevertheless, the region maintained strong operational performance with a 10.8% adjusted EBIT margin through consistent cost management and price adjustments.

The APAC region faced particularly challenging conditions with an 18% sales decline to €201 million, driven by weak demand in India and Southeast Asia and reduced mining industry business. Despite these headwinds, the region achieved a 10.8% adjusted EBIT margin, marking the fourth consecutive year of double-digit profitability. Investment activities were disciplined, with capital expenditures reduced to approximately €52 million from €57.4 million, focusing on production efficiency improvements and strategic growth initiatives including the Gunite product portfolio integration in the US and preparations for the new Rowlett, Texas production facility.

Frank Lorenz-Dietz, Member of the Management Board and CFO, highlighted the company's focus on earnings quality and financial stability in a lower sales environment. The company will publish final audited figures, detailed segment information, sustainability reporting, and the fiscal year 2026 outlook in its annual report on March 19, 2026. Further information about the company is available at https://www.safholland.com, and the original release can be viewed at https://www.newmediawire.com.

Curated from NewMediaWire

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Editorial Staff

Editorial Staff

@editorial-staff

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