SAF-HOLLAND maintains strong profitability in a challenging market environment in 2025

SAF-HOLLAND maintains strong profitability in a challenging market environment in 2025

• Group sales of EUR 1,734.4 million achieved (previous year: EUR 1,876.7 million)
• Solid adjusted EBIT margin of 9.5% (previous year: 10.1%)
• Result for the period at EUR 50.9 million (previous year: EUR 77.3 million)
• Free operating cash flow reached EUR 111.1 million (previous year: EUR 146.5 million)
• Dividend of EUR 0.65 per share proposed
• Sustainability performance further improved in 2025

Bessenbach, March 19, 2026. SAF-HOLLAND SE (“SAF-HOLLAND”), one of the world’s leading suppliers of trailer and truck components, closed the 2025 fiscal year in an overall challenging market environment with robust operating profitability and continued solid cash flow.

Sales share of the non-cyclical aftermarket business rises to 39.7% (previous year: 37.9%)

Group sales for the 2025 fiscal year amounted to EUR 1,734.4 million, down 7.6% from the prior-year figure (EUR 1,876.7 million). The primary cause was weak customer demand in the original equipment business, particularly in the Americas and parts of the APAC region.

On an organic basis – i.e. adjusted for currency and acquisition effects – Group sales decreased by 6.5%. Negative currency effects totaled 2.3%, while acquisition effects from Tecma and Assali Stefen made a positive contribution.

At the same time, the increase in the share of the non-cyclical aftermarket business in Group sales – from 37.9% to 39.7% – had a positive impact on earnings. The aftermarket business thus made a resilient contribution to the company’s performance in a cyclical market environment.

Adjusted EBIT margin of 9.5% exceeds the forecast and confirms resilient profitability

Due to lower sales, adjusted EBIT for the 2025 fiscal year amounted to EUR 164.0 million (previous year: EUR 190.5 million). This resulted in an adjusted EBIT margin of 9.5% (previous year: 10.1%), exceeding the company’s forecast. Frank Lorenz-Dietz, Member of the Management Board and Chief Financial Officer of SAF-HOLLAND SE, emphasizes: “Despite the challenging market environment and the additional burdens resulting from U.S. tariff policies, we succeeded in achieving robust operating profitability in fiscal year 2025. Key factors in this were our consistent cost management, a favorable product mix with a growing share of the aftermarket business, and the continued realization of synergies from the Haldex integration. The adjusted EBIT margin of 9.5% demonstrates that our earnings management remains reliable even under difficult conditions.”

Solid result for the period – dividend of EUR 0.65 proposed

Based on the result before taxes of EUR 78.3 million (previous year: EUR 120.1 million) and an unchanged effective income tax rate of 34.9%, SAF-HOLLAND achieved a result for the period attributable to shareholders of EUR 50.9 million in fiscal year 2025 (previous year: EUR 77.3 million). Based on a weighted average number of shares of 45.4 million, this results in basic earnings per share of EUR 1.12 (previous year: EUR 1.70). Diluted earnings per share also amounted to EUR 1.12 based on a weighted average number of shares of 45.4 million (previous year: EUR 1.70).

The Management Board and the Supervisory Board of SAF-HOLLAND SE will propose to the Annual General Meeting on May 21, 2026, that a dividend of EUR 0.65 per share be distributed for the 2025 fiscal year. This corresponds to approximately 47% of the distributable result for the period, which has been adjusted for non-cash, unrealized currency translation effects in the financial result amounting to EUR –16.0 million. Based on the result for the period attributable to shareholders, this results in a payout ratio of approximately 57%. At the closing price of the SAF-HOLLAND share at the end of December 2025, this corresponds to an attractive dividend yield of 4.2%.

Operating free cash flow reaches EUR 111.1 million

Operating free cash flow – defined as net cash flow from operating activities after deducting net investments in property, plant, and equipment and intangible assets – reached a solid level of EUR 111.1 million in fiscal year 2025 (previous year: EUR 146.5 million). The year-over-year decline is primarily attributable to lower earnings due to market conditions and a less pronounced release of working capital compared to the previous year. Following a net cash outflow of EUR 12.7 million related to the acquisition of the remaining joint venture shares in Haldex India (previous year: EUR 39.8 million), free cash flow amounted to EUR 98.4 million (previous year: EUR 106.7 million). As a result, the Group continued to have a robust liquidity base in fiscal year 2025, ensuring financial flexibility and scope for investments as well as reliable capital allocation.

Outlook for the 2026 fiscal year

For 2026, SAF-HOLLAND expects an overall positive business trend in the trailer and heavy-duty truck segments in its core EMEA market. In North America, the company continues to anticipate subdued market conditions in the trailer and Class 8 truck customer segments. However, demand could develop more favorably than currently anticipated if ongoing political and regulatory processes generate additional momentum. These include, in particular, the renegotiation of the USMCA trade agreement as well as possible adjustments to emissions standards under the EPA27 regulation. In the APAC region, SAF-HOLLAND also anticipates an overall positive business development, driven in particular by the dynamic growth of the Indian market. In the aftermarket business, stable development is currently expected, supported by the large vehicle population resulting from original equipment deliveries in previous years.

Based on stable exchange rates, the Management Board expects Group sales for the 2026 fiscal year to range from EUR 1,700 million to EUR 1,850 million (previous year: EUR 1,734.4 million).

For 2026, the company is targeting an adjusted EBIT margin of 9% to 10%. The company expects positive momentum, particularly from a continued robust aftermarket business and economies of scale in regions with positive growth momentum. Progress in the ongoing efficiency program in the indirect area is expected to contribute to further cost relief and counteract the general rise in wage levels. A shift in the regional sales distribution, with a higher share attributable to the EMEA region, is likely to have an offsetting effect. SAF-HOLLAND intends to largely offset inflation-driven cost increases through targeted measures to improve operational efficiency and strict cost control.

To achieve the medium- and long-term growth targets and position the company for the future in terms of products, investments amounting to up to 3% of Group sales (previous year: 3.0%) are planned for the 2026 fiscal year.

Alexander Geis, Chairman of the Management Board and Chief Executive Officer of SAF-HOLLAND SE, comments: “Our business model offers stability even under challenging conditions. Our outlook for 2026 builds on this and is clearly aligned with our “drive2030“ strategy. We remain firmly committed to customer focus, regional strength, and operational excellence to create sustainable value even in a heterogeneous market environment.”

Sustainability performance further improved in 2025

In line with the Group’s “drive2030” strategy, in which sustainability is a central element, SAF‑HOLLAND made significant progress across various sustainability dimensions in the past fiscal year. For instance, Scope 1 and Scope 2 CO₂ emissions were reduced by 6.0% compared to the previous year. At the same time, conditions related to occupational health and safety were further improved across the Group. This was reflected in particular by the lost time injury Rate (LTIR), which was 6.6% lower than the previous year, and underscores the company’s ongoing efforts to ensure safe working conditions for its employees.

These and other advances were also positively recognized in external sustainability ratings. In the EcoVadis assessment process, SAF-HOLLAND achieved an overall score of 68 points, placing it among the top 35% of the more than 150,000 companies analyzed worldwide. Furthermore, in the CDP Disclosure Cycle 2025, SAF-HOLLAND improved its rating in the area of climate change by two levels to a B rating (previous year: C).

Against this backdrop, SAF-HOLLAND has set concrete emissions reduction targets for its own business activities for the first time. The Group aims to reduce its Scope 1 and Scope 2 emissions by 42% by 2030 compared to the base year 2024 and by 90% by 2050 – in line with its long-term net-zero commitment and a science-based 1.5-degree pathway.

Financial figures for the 2025 fiscal year

Contact:

 Dana Unger      

VP Investor Relations, Corporate & ESG Communications

Phone: +49 6095 301 949

dana.unger@safholland.de

Alexander Pöschl 

Senior Manager, Investor Relations, Corporate & ESG Communications

Phone: +49 6095 301 117

alexander.poeschl@safholland.de

About SAF-HOLLAND

SAF-HOLLAND SE is a leading international manufacturer of chassis-related assemblies and components for trailers, trucks, and buses. An average of around 5,600 dedicated employees worldwide generated sales of approximately EUR 1.73 billion in 2025.

The product range includes axle and suspension systems for trailers as well as fifth wheels and coupling systems for trucks, trailers, and semi-trailers as well as brake and EBS systems. In addition, SAF-HOLLAND also develops innovative products to increase the efficiency, safety, and environmental friendliness of commercial vehicles. With the brands SAF, Holland, Haldex, Assali Stefen, KLL, Neway, Tecma, V.Orlandi and York, the Group achieved strong market positions in the top three positions in the most important regions worldwide in 2025.

SAF-HOLLAND supplies manufacturers in the original equipment market on six continents. In the aftermarket business, the company supplies spare parts to manufacturers’ service networks and wholesalers as well as to end customers and service centers via an extensive global distribution network.

SAF-HOLLAND SE is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX (ISIN: DE000SAFH001). Further information is available at  www.safholland.com.