Dürr Aktiengesellschaft ETR: DUE said its first-quarter 2026 results largely matched internal expectations, with management pointing to resilient performance in its automotive and woodworking divisions despite continued geopolitical and economic uncertainty.
CEO Jochen Weyrauch said the war in the Middle East had added “a lot of additional political and economic uncertainty,” but that the company’s two largest divisions “did relatively well” with robust order intake and profitability. The group confirmed its 2026 outlook issued in early March, although management said the forecast for the Industrial Automation division is under review following weaker-than-expected performance at BBS Automation.
Group sales totaled EUR 940 million in the quarter, which management described as a muted start to the year. Weyrauch attributed the slower sales development partly to customer-induced delays in automotive projects and to the lingering impact of weak order intake during tariff-related uncertainty in the second and third quarters of 2025. He said Dürr expects higher quarterly sales over the remainder of the year.
Order intake fell 11% year over year, with the decline partly driven by lower new orders at BBS Automation’s mobility business. The book-to-bill ratio was slightly above 1. Weyrauch said automotive has a solid investment pipeline, though the timing of awards remains difficult to predict given market uncertainty.
Profitability Improves Despite Lower Sales
Dürr reported an EBIT margin before extraordinary effects of 4.2% in the first quarter. Weyrauch said the improvement was supported by a good start in automotive, gains in service profitability, administrative cost reductions and sharply lower corporate center expenses related to the ONE Dürr Group program.
CFO Dietmar Heinrich said the gross margin rose by 60 basis points despite lower sales, helped by improved utilization at HOMAG following prior capacity reductions, higher service margins and reduced depreciation and amortization. He also cited a decline in administrative costs as a share of sales to 5.6% from 6.4%.
Reported EBIT improved by 13%, while net profit rose 22%, aided by an improved financial result and lower extraordinary effects. Free cash flow was positive at EUR 29 million, supported by a further reduction in net working capital to EUR 291 million.
Heinrich cautioned that cash flow will face headwinds later in the year as working capital needs rise with sales acceleration and as the company makes tax payments related to the sale of its environmental technology business, addresses a German tax claim it considers unjustified and pays for administrative restructuring measures.
Automotive Pipeline Solid, But Timing Remains Uncertain
Weyrauch said automotive order intake was solid and that the division sees a better pipeline than last year, particularly in Asia and North America. During the question-and-answer session, he said the pipeline is mixed, including some larger projects, midsize projects and upgrades, though he does not expect “high triple-digit” million-euro projects this year.
Automotive sales were affected by project delays that Weyrauch described as largely technical rather than sentiment-driven. He said some delays involved approvals and customer changes to layouts at a late stage, requiring Dürr to adapt engineering work. The delays were seen in Europe, the Middle East and North America.
The automotive division posted a 6% margin in the first quarter, which Weyrauch called a solid start and a basis for reaching the full-year target of 7% to 8%. He said the division’s sales channel points to higher revenue in the coming quarters, along with higher net working capital needs, mainly reflected in contract assets.
On electric vehicle-related activity, Weyrauch said automotive projects have shifted compared with two or three years ago, when most projects were driven by e-mobility. He said Dürr now sees more activity involving facilities that produce hybrid cars, or flexible plants capable of producing internal combustion, hybrid and battery-electric vehicles.
BBS Automation Weighs on Industrial Automation
Industrial Automation showed mixed performance. Weyrauch said Schenck’s balancing technology business achieved significant increases in order intake and earnings, while BBS Automation fell short of expectations.
Dürr has started efficiency measures at BBS Automation, including consolidating its China operations at the Kunshan site and closing the neighboring Suzhou site. Weyrauch said additional measures in other regions are being developed and will be presented later. He said the softness in BBS Automation is particularly tied to the automotive and mobility market, while the company will also sharpen its go-to-market approach and further integrate activities within the group.
The company said the Industrial Automation divisional outlook is under review, but Weyrauch emphasized that any adjustment would not affect the group outlook because Industrial Automation is Dürr’s smallest division and Schenck continues to perform well.
Woodworking Orders Beat Recent Average
In the Woodworking division, order intake reached EUR 370 million in the first quarter, above last year’s quarterly average of EUR 352 million. Weyrauch said business with the furniture industry remains subdued, while the positive trend in timber house production technology continued.
Sales in woodworking were affected by weaker order intake following tariff conflicts in 2025, but management expects sales to gain traction during the year. The division’s margin was weighed down by lower sales, higher research and development spending and initial one-off costs for an ERP transition.
Weyrauch said HOMAG’s new factory in Poland is expected to ramp up later this year and generate further efficiency gains from 2027. In response to an analyst question, he said the ERP project is expected to go live at the beginning of 2028, with total project costs of about EUR 10 million to EUR 15 million.
Management Reaffirms Group Outlook
Dürr reaffirmed its 2026 group guidance, with Weyrauch saying first-quarter margin improvement laid the foundation for a full-year increase. He identified key drivers as further earnings potential in Woodworking, administrative cost savings, lower ONE Dürr Group expenses and reduced losses in the lithium-ion battery business.
The company also discussed its exposure to the Middle East, where sales amount to around EUR 150 million, with more than 80% tied to Saudi Arabia. Weyrauch said Dürr is executing two major projects near Jeddah and has not seen major impediments from the conflict so far.
Management also said Dürr has requested refunds of IEEPA tariffs paid after they were declared unlawful by U.S. courts. Weyrauch described the potential amount as a “lower double-digit” million-euro figure, but said timing is uncertain and the guidance does not include any benefit.
Heinrich said net financial debt declined to EUR 47 million after positive free cash flow, while total liquidity remained high despite a nearly EUR 150 million decrease tied to repayment of a convertible bond in January. He added that a EUR 100 million Schuldschein was paid off in April and that there are no remaining maturities in 2026 from the company’s current perspective.
Weyrauch also said Dürr will announce Heinrich’s successor as CFO soon, noting that the decision has been made and only final details remain.
About Dürr Aktiengesellschaft ETR: DUE
Dürr Aktiengesellschaft, together with its subsidiaries, operates as a mechanical and plant engineering company worldwide. The company's Paint and Final Assembly Systems segment plans, builds, and updates paint shops and final assembly lines for the automotive industry. It also provides products and systems for various process stages in paint shop technology; control and conveyor systems, air supply, and exhaust-air systems; DXQ software family, which includes solutions for plant monitoring, manufacturing execution systems, advanced analytics, and other digital solutions; conveyor technology, filling, and testing, as well as assembly technology and marriage stations for connecting the car body and power train; consulting services; and assembly and test stands and calibration stations for brakes, electronics, and chassis geometry.
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