Wacker Neuson (ETR:WAC) reported a stronger start to fiscal 2026, citing a recovery in parts of Europe, growing order intake, and improved profitability in the first quarter. Management also reiterated its full-year guidance, while emphasizing ongoing macroeconomic and geopolitical uncertainty.
First-quarter results show higher revenue and profitability
CEO Karl Tragl said first-quarter revenue rose to EUR 591 million, an increase of “almost 20%” versus Q1 2025. He added that order intake continued to grow and that the group’s book-to-bill ratio remained above 1 during the first months of the year.
Supported by higher revenue and “unchanged operating costs,” Tragl said earnings before interest and taxes increased to EUR 42 million. That translated into an EBIT margin of 7.0%, up 4.5 percentage points compared with the prior-year quarter, as profitability grew faster than revenue.
Tragl also noted the group’s net working capital ratio improved year over year, declining by 2.1 percentage points to 30.7%. Due to net working capital investments, he said free cash flow was “slightly negative,” at -EUR 3 million (later characterized by CFO Christoph Burkhard as -EUR 2.7 million, “about neutral”).
Europe leads growth; currency effects weigh on reported Americas performance
Tragl said Europe—representing about 80% of revenue—delivered the largest increase, with revenue rising roughly 27% to EUR 472 million. He attributed this to “significant demand increases” in key markets and highlighted strong performance from Kramer and Weidemann, the group’s agriculture-focused brands, which grew 65% year over year in the quarter.
In the Americas, revenue reached EUR 108 million. While the figure represented a nominal 2% decline, Tragl said revenue increased 8% when adjusted for currency effects.
Asia-Pacific revenue rose to about EUR 12 million, up 8% reported and 12% adjusted for currency effects. Tragl said the region benefited from increased demand in Australia, partly offset by lower demand in China.
Compact Equipment drives gains; services impacted by weaker DACH rentals
By segment, Tragl said Compact Equipment—about 60% of group revenue—posted revenue of EUR 356 million, representing 40% year-over-year growth. He said demand for telehandlers, wheel loaders, and excavators rose significantly versus the prior year.
Light equipment, which accounts for about 19% of group revenue, was “essentially at the previous year's level,” Tragl said, though it increased 6% when adjusted for foreign exchange effects. During the Q&A, Tragl explained the disparity between light equipment and compact equipment growth partly by pointing to Wacker Neuson’s already high market share in light equipment versus more room to gain share in certain compact equipment categories such as excavators. He also noted the different revenue impact per unit, contrasting light equipment priced in “the small thousands” with compact equipment in “the small ten thousands.”
The services business, about 21% of group revenue, declined slightly. Tragl said the primary driver was lower rental revenue in the DACH region, attributing this to adverse weather and “a delayed start of construction projects from economic stimulus programs,” with funds “releasing…slower than initially planned.”
Balance sheet: lower net debt year over year, leverage at 0.6
CFO Christoph Burkhard said the net working capital ratio rose moderately versus year-end, reflecting higher activity levels from a low year-end base, but remained well below the prior-year level of 32.8%. He said an integrated sales and operations planning (S&OP) process across the group was contributing to better seasonal management and inventory optimization.
Burkhard illustrated the change by comparing current inventory levels with earlier periods, noting that in 2024—two years earlier—after a first quarter with similar revenue, inventories were 20% higher in absolute terms than they are today.
On indebtedness, Burkhard said net financial debt at the end of Q1 was EUR 196 million, only slightly higher than year-end 2025, and down 34% year over year. He added that net debt was “less than half” the level recorded after Q1 2024. The group’s leverage ratio stood at 0.6, unchanged from year-end 2025, while the equity ratio remained at 62%.
Burkhard said he expected “a gradual positive contribution” to free cash flow through the remainder of the year.
Guidance reiterated amid uncertainty; book-to-bill cited at about 1.3 in Q1
Tragl said that since the company’s late-Marchearnings call business drivers had “remained largely unchanged,” describing the global economic and geopolitical environment as uncertain. He cited subdued investment momentum, trade conflicts, rising protectionism, and said the situation was “further intensified by the war in the Middle East since early March.” While indicators point to moderate construction recovery, he said the sector remains subdued with “remarkable differences” across end markets.
Against that backdrop, Tragl said the company confirms its full-year 2026 guidance and expects a “slight market upturn.” The company continues to forecast:
- Revenue between EUR 2.2 billion and EUR 2.4 billion
- EBIT margin in the range of 6.5% to 7.5%
- Capital expenditures of about EUR 70 million to EUR 90 million
- Net working capital ratio below the strategic target of around 30% by the end of 2026
In the Q&A, Tragl provided more detail on order momentum, stating the group’s book-to-bill ratio in the first quarter was “around about 1.3,” and that it typically fluctuates between 1.0 and 1.5. He declined to comment on April figures, noting the company had “clear numbers for the first quarter” and did not want to provide additional commentary.
Asked about production trends, Tragl said production volume is generally higher in the second quarter than the first, but emphasized the company intends to stay flexible and adjust output to market demand and order timing. He said lead times were currently “a couple of months” and could shift up or down quickly, adding that production flexibility supports the group’s working capital management.
On the rental business, Tragl said the year began weak due to weather, but he described improvement through the quarter. “We saw a picking up of rental business in the course of the months from a very weak January, February up to much stronger March and April,” he said. He also contrasted customer behavior with the prior year, saying that in early 2025 companies tended to rent rather than buy, while “this year it’s just the other way around,” contributing to a slight decline in services revenue.
In closing remarks, Tragl said the company’s cooperation with John Deere is “moving forward as we have planned,” and that Wacker Neuson continues to focus on innovation with new machines in the pipeline. Peer Schlinkmann, Head of Investor Relations, ended the call by inviting investors to reach out with further questions and noted the company’s annual general meeting is scheduled for May 13 in Munich.
About Wacker Neuson (ETR:WAC)
Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company provides internal and external vibrators for concrete compaction; rammers; vibratory plates; rollers for soil compaction; demolition and light products; generators; pumps; and heaters. It also offers compact equipment, including excavators, wheel loaders, telescopic wheel loaders, skid steer loaders, telehandlers, wheel and track dumpers, and backhoe loaders, as well as related product attachments and accessories.
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