Fuchs (ETR:FPE3) reported full-year 2025 results that management described as “very solid,” with sales and EBIT reaching record levels and free cash flow strengthening despite currency headwinds and a volatile market backdrop. Speaking on the company’s annual results call, CEO Stefan Fuchs said performance was in line with the outlook given at the end of July last year, while CFO Esma Saglik pointed to strong second-half momentum following what she called a “challenging” second quarter.
2025 results: record sales and EBIT, higher cash generation
Saglik said sales reached EUR 3.6 billion, up around 1% year-over-year and a new all-time high, driven by a combination of organic growth and acquisitions. She noted, however, that currency effects were a significant drag, reducing reported sales by about 2%.
Free cash flow before acquisitions increased to EUR 316 million, up 3% year-over-year, which Saglik attributed to better earnings after tax, capital spending below depreciation, and improved working capital. Earnings per share rose 2%, while Fuchs Value Added (FVA) reached EUR 249 million.
Regional performance: Asia-Pacific passed EUR 1 billion; Americas profitability declined
In EMEA, Saglik said sales rose slightly, mainly due to acquisitions that offset softer organic performance. She attributed weaker organic sales to “challenging market environments in Europe,” particularly in automotive manufacturing, while pointing to positive development in Germany, South Africa, and Sweden. Profitability in EMEA remained “strong” and slightly above the prior year, she said.
Asia-Pacific delivered the strongest growth, with sales exceeding EUR 1 billion for the first time despite negative currency effects. Saglik said organic growth in the region was 7%, led by China, Australia, and India, with most other countries contributing positively. Regional EBIT increased 12% year-over-year.
In North and South America, sales increased 2%, including 7% growth supported by several sectors that was largely offset by currency pressure. However, Saglik said regional EBIT declined 18%, driven by “negative mix effects and higher costs.” Later in the Q&A, Stefan Fuchs said the Americas were “the weak point last year,” adding that while performance improved toward year-end, “there is still work to do in the Americas.”
Working capital, liquidity, and dividend proposal
Fuchs ended 2025 with net working capital at 21% of annual sales, improving from 22.3% at the end of 2024. Saglik said working capital discipline supported cash generation, and net liquidity rose EUR 110 million year-over-year to EUR 151 million.
Reflecting the company’s “progressive dividend policy,” Saglik said Fuchs will propose a dividend increase of EUR 0.06 per share to EUR 1.23 per preference share and EUR 1.22 per ordinary share, marking the company’s 24th consecutive dividend increase.
Outlook for 2026: higher sales and EBIT, Opet Fuchs consolidation included
Management emphasized heightened uncertainty around raw materials and supply chains following conflict in the Middle East. Saglik said early 2026 began with stable raw material conditions, but visibility deteriorated after disruptions to oil and petrochemical supply chains. She said Fuchs’ globally diversified sourcing provides flexibility, though the company is monitoring the situation closely and has put countermeasures in place.
Assuming no major disruptions to the global economy and supply chains, the company guided to:
- Sales of around EUR 3.7 billion, with growth “partly offset” by negative FX effects.
- EBIT of around EUR 450 million, supported by growth and continued cost discipline.
- FVA of around EUR 250 million.
- Free cash flow before acquisitions of about EUR 270 million.
The outlook includes the planned acquisition of the remaining stake in Opet Fuchs in Turkey, which management expects to close in the second quarter pending formal approvals. Saglik said the forecast assumes about two-thirds of Opet Fuchs’ annual sales contribution, with Opet Fuchs generating roughly EUR 100 million of annual sales. Stefan Fuchs added that Turkey has been accounted for via equity method so far and will move to full consolidation once the deal closes.
Q&A: raw material availability, pricing approach, and early 2026 trading
Analysts focused heavily on raw materials, availability risks, and how quickly Fuchs can pass through input cost inflation. Stefan Fuchs said the “name of the game is really availability,” describing strong demand and emphasizing that the company’s priority is servicing existing customers rather than taking on opportunistic new business it cannot reliably supply. He said he was not aware of suppliers declaring force majeure to Fuchs at the time of the call.
On pricing, Stefan Fuchs said the company has established committees in various countries to monitor availability and pricing actions. He also noted that in 2022 Fuchs canceled most price variation clauses because they did not work during a rapid spike in input costs. Management did not quantify pricing assumptions embedded in 2026 guidance, saying the environment is too uncertain, and Saglik added that “no price assumptions right now are underlying in our numbers.”
Regarding EMEA margins, Saglik said stronger fourth-quarter profitability was driven by “very good customer” dynamics and pricing, alongside the impact of cost avoidance and efficiency measures announced mid-2025 that began flowing more materially through the P&L in late Q3 and Q4.
On 2026 trading, Stefan Fuchs said the first quarter started “according to our outlook,” citing continued growth in Asia and stable development in Europe. He said the order book became “full, as full can be” after the March escalation, though he cautioned that managing incoming orders creates extra internal work and requires careful prioritization. Saglik said 2026 CapEx is expected to remain around the 2025 level of EUR 90 million, consistent with the company’s typical spending of roughly 2% of sales.
Fuchs also reiterated that its Capital Market Day will be held on April 16 in Mannheim, where the company plans to provide more detail on its next strategy phase, “Fuchs 100,” following the completion of its “Fuchs 2025” program.
About Fuchs (ETR:FPE3)
Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils.
