Aumovio Q1 EBIT rises despite sales decline

Frankfurt am Main, Germany – AUMOVIO concluded the first quarter of 2026 amid a persistently challenging market environment and delivered clear improvements in adjusted EBIT as well as adjusted and normalized free cash flow.

Adjusted consolidated sales came in at €4.4 billion, representing a decline of 7.8 percent year-on-year (Q1 2025: €4.8 billion). In addition to the realignment of the product and technology portfolio as part of the company’s comprehensive transformation, adverse foreign exchange effects weighed on sales. Adjusted EBIT climbed by 14.3 percent to €106 million (Q1 2025: €93 million), and the adjusted EBIT margin rose to 2.4 percent (Q1 2025: 1.9 percent). Adjusted operating earnings improved primarily due to a higher gross margin resulting from an improved product mix. In addition, the continued execution of efficiency programs led to further cost reductions in research and development.

“In the first quarter, a persistently challenging market environment, combined with material currency effects and volume declines, affected our business performance. Nevertheless, we succeeded in further improving profitability – a clear indication of the effectiveness of our ongoing efficiency measures, which will continue to play a central role going forward. The recently announced decision to streamline our manufacturing footprint by four additional plants underscores our strong commitment to cost competitiveness. Despite persistent market weakness, we have achieved a solid start to our first full fiscal year,” said Philipp von Hirschheydt, CEO of AUMOVIO.

Strong balance sheet and enhanced free cash flow
AUMOVIO continues to have a strong balance sheet structure with a high equity ratio of 53.6 percent as of March 31, 2026, and was able to further improve its net liquidity position. Adjusted free cash flow increased by €30 million to €-3 million (Q1 2025: €-33 million). Normalized free cash flow, adjusted for special effects related to restructuring measures and the spin-off reflected in adjusted EBIT, increased to €147 million (Q1 2025: €109 million).

“Strict cost and cash management is our top priority – and we continued to make further progress in the first quarter. The improved free cash flow and strong net liquidity give us the financial flexibility to navigate a challenging market environment with confidence, while at the same time laying the foundation for further profitable growth,” said Jutta Dönges, CFO of AUMOVIO.

Performance development of business areas
The business areas delivered a mixed performance in the first quarter of 2026:

In the Autonomous and Commercial Mobility business area, adjusted sales came in at €724 million, significantly below the prior-year figure (-13.1 percent). This decline was driven primarily by lower volumes and adverse foreign exchange effects. Adjusted EBIT amounted to €-19 million (Q1 2025: €1 million). The decrease was mainly driven by volume effects and a shift in the product mix.

The Architecture and Network Solutions business area recorded adjusted sales of €1.2 billion. The year-on-year decline of 4.9 percent was driven primarily by adverse foreign exchange effects. Adjusted EBIT improved significantly from €39 million in the prior-year period to €62 million, driven mainly by efficiency-enhancing transformation measures and strict cost management.

The Safety and Motion business area generated adjusted sales of €1.7 billion. The year-on-year decline of 7.2 percent was mainly due to adverse foreign exchange effects and volume declines. Adjusted EBIT came in at €61 million, below the prior-year result of €79 million. The decline was primarily driven by negative foreign exchange effects.

The User Experience business area achieved a significant improvement in profitability. Although adjusted sales declined by 4.1 percent to €721 million, mainly due to volume declines, adverse foreign exchange effects and annual price adjustments, adjusted EBIT improved by nearly €40 million to €6 million. This was driven mainly by the consistent execution of structural optimization measures, sustained improvements in material costs, and efficiency gains in production.

Subdued automotive production in Q1 – guidance confirmed
According to S&P Global Mobility, global passenger car and light vehicle production was down approximately 3 percent year-on-year in the first quarter of 2026 (Q1 2025: 22.3 million units). The European market remained broadly stable, reaching a production volume of approximately 4.2 million units (-1 percent). In North America, production volumes declined to approximately 3.7 million units (-2 percent). China recorded a more pronounced regional decline of 10 percent to approximately 6.4 million units. For the full year 2026, S&P Global Mobility anticipates a moderate decline of approximately 2 percent in global production – a cautious adjustment relative to the January forecast, reflecting the persistently challenging market environment.

Against this backdrop, AUMOVIO continues to anticipate an overall challenging market environment for fiscal year 2026, characterized by persistent geopolitical tensions and trade policy uncertainty. In addition, ongoing supply chain disruptions and availability constraints, despite partial stabilization, along with higher raw material and memory component costs, continue to weigh on the market environment.

Based on business performance to date and the expected market development over the remainder of the year, AUMOVIO confirms its full-year guidance for 2026. The company remains focused on the consistent execution of its “Lead. Transform. Deliver.” strategy.

As part of its active portfolio management and the continued optimization of its global site network, suitable investors have been identified for the sites in Mechelen, Belgium, and Rheinboellen, Germany. Both transactions are expected to close within the next months, subject to closing conditions as well as regulatory and other approvals.