(Update: Statements from the online press conference, share price)
MANNHEIM (dpa-AFX) - Lubricant manufacturer Fuchs has managed to hold its ground in a weak economic environment. Sales edged up slightly in the first nine months, and earnings declined less than analysts had expected. "Fuchs continues to operate in a challenging environment," the MDax-listed company reported on Friday in Mannheim. Demand has been subdued due to the tariff policies of U.S. President Donald Trump and sluggish industrial production in Europe. The overall economic situation is expected to remain weak through the end of the year. Nevertheless, the company confirmed its annual targets, which had been cut in the summer.
The quarterly results were well received on the stock market. The preferred share jumped more than 11 percent in early trading, leading the MDax gainers. Most recently, the stock was still up around 6.7 percent at EUR40.90, recovering somewhat from its yearly low in September. Despite this, the stock remains slightly down for the year.
Analyst Anil Shenoy of British investment bank Barclays sees clear signs of improvement for the lubricant maker in the third quarter. After stagnation in the previous quarter, organic sales growth picked up to 2 percent, with better performance across all regions. For Constantin Hesse at the analysis firm Jefferies, the reaffirmed outlook is a relief, especially after sentiment had recently been dampened by the downward revision of targets.
"Despite a persistently challenging economic environment and negative currency effects, we have succeeded in further expanding our business," said CEO Stefan Fuchs. Sales grew not only thanks to acquisitions but also organically, rising by one percent overall to EUR2.7 billion. Moreover, profits did not decline as sharply as in the first half of the year.
Earnings before interest and taxes (Ebit) shrank by two percent to EUR326 million by the end of September due to higher costs. However, analysts had expected a steeper drop. While the company earned significantly more operationally in the Asia-Pacific region, earnings in North and South America fell by one fifth. Fuchs attributed this, among other things, to start-up costs in the large customer business in North America. In the third quarter, the Americas region returned to its previous level, CEO Fuchs said in an online press conference.
At the bottom line, the company posted a profit of EUR228 million for the first nine months, a decrease of three percent.
Since July, the company has been targeting full-year sales and operating earnings (Ebit) at the previous year's level. In 2024, revenue was just over EUR3.5 billion and earnings before interest and taxes totaled EUR434 million.
Meanwhile, the company plans to continue its acquisition strategy. "We have the resources. We are debt-free, with a high equity ratio," said Fuchs. The company's balance sheet would also allow it to take on debt, but there is a lack of larger takeover targets. Management is in talks with many families and companies, but it often takes many years before such firms are sold.
Last year, the company acquired Lubcon from Maintal, Hesse, a manufacturer of high-performance specialty lubricants, as well as Swiss industrial lubricant producer Strub. In the first half of 2025, Fuchs followed up with the purchase of specialty lubricant manufacturer Boss from Albstadt and U.S. lubricant solutions specialist Irmco. Most recently, Fuchs announced the acquisition of Swiss distribution partner Aseol Suisse.
For the Mannheim-based lubricant manufacturer, which employs nearly 6,900 people, the automotive and commercial vehicle industries are especially important. Around 30 percent of Fuchs's revenue comes from these sectors. The shift from combustion engines to electric motors is therefore also bringing changes for Fuchs. In addition, the group serves customers in sectors such as mechanical engineering, metalworking, mining, aerospace, and agriculture and forestry.
